Probate helps ensure that your administrator follows the plans you stated in your will. However, the probate process may take a while, and your heirs may not have the financial means to wait long for disbursement.
There are several ways you can infuse your loved ones with cash quicker after your death. Consider adding these to your estate plan to set your family up for success.
Do you co-own property with others?
Co-owning property and accounts is one surefire way you can pass assets without the time constraints of probate. You may want to add family members to cash and savings accounts as well as real estate deeds.
Can you revisit your insurance and 401(k) beneficiaries?
A simple way to get those you love money outside of probate is by utilizing beneficiary designations on various accounts. The obvious choice, life insurance policies, disburses the policy payments directly to those you name in the related increments. Retirement accounts, such as 401(k) plans, act similarly. You get the chance to divide shares among the people of your choosing.
How does a trust work?
A trust account holds items of value for trustees to take ownership of through parameters you set. Trust accounts do not become part of probate because you do not technically own them. You may place property and cash inside a trust for protection.
Becoming familiar with fiduciary tools at your disposal during estate planning may give you broad options to provide cash and peace of mind for your family.