While the overarching objectives of estate planning are minimizing estate tax liability and ensuring assets are distributed according to a person's exact wishes, there are other considerations that will undoubtedly factor into a person's decisions concerning the disposition of their assets.
Indeed, one of the primary concerns for many people is avoiding the probate process, as they may see it as taking both time and money, and perhaps serving to needlessly prolong the mourning process for their family and friends.
In recognition of this reality, today's post, the first in an ongoing series, will start examining some of the estate planning strategies that can be undertaken as a means of obviating the need for formal probate administration.
In general, both personal property (bank accounts, certificates of deposit, etc.) and real property (homes, land, etc.) can be held by two or more people via joint tenancy. What this essentially means is that the ownership interest of one joint tenant automatically passes to the other surviving joint tenants upon death.
By way of example, consider 10 acres of land owned by Person 1 and Person 2 as joint tenants. Person 2's passes away suddenly and, as a result, the 10 acres are now owned solely by Person 1 with no need for the probate court to address the matter.
While owning property as joint tenants is an effective probate avoidance tactic, it's important to understand that it's not without its limitations:
We'll continue discussing estate planning strategies to help avoid probate in future posts.
In the meantime, consider speaking with an experienced legal professional if you have any questions or concerns relating to estate planning or probate administration.