For Most, The Name Of The Game Is Probate Avoidance.

One of the goals for estate planning for most people is to avoid probate. Probate is the court involved process to transfer title of a loved one who has died to his or her beneficiaries or heirs. Probate is costly and time consuming. It can costs thousands of dollars and take many months.

There are a few ways to avoid probate.

The first way is to ensure that all of your contract based accounts like bank accounts, life insurance policies, retirement accounts have beneficiaries named. Call your financial institutions and ask if you have beneficiaries for your accounts. Review the beneficiaries and update them if needed. Upon your death, the financial institutions will transfer the assets directly to your beneficiaries so long as your beneficiaries follow their processing requirements.

The second way is to ensure that all of your assets that do not have a beneficiary named are in a trust. A trust is a legal fiction created for the private management of your assets in accordance to your wishes. Most people just need a Living Trust. If the Living Trust is properly created and funded, it will avoid probate as the successor trustee is able to privately manage your assets in the event of your passing.

The third way involves any assets in the aggregate worth less than $100,000 excluding real estate. Let's say you have beneficiaries named for most of your bank accounts and life insurance policy. Let's also say you have a Living Trust for your home. Then let's say that you forgot about that credit union savings account with your former employer that has $4,000 in it. Since all of your other assets are avoiding probate and what's left is less than $100,000, you can avail yourself to California's small estate affidavit procedure. This is a non-court procedure that allows you to request the financial institution to transfer the asset by providing a certified copy of the death certificate along with an affidavit following the requirements of California Probate Code Section 13100 (and et. seq.).

The small estate affidavit procedure is easier than it appears at first glance. Most probate and estate planning attorneys can help you with the requirements, write the letter for you and help you open a bank account with the funds as the check may be payable to the "estate of" instead of you directly as a beneficiary.

If you are not sure about what to do, seek counsel with a few probate attorneys in your area. Many offer a initial consultation at no charge.