Dealing with probate can be a long and frustrating process. In our latest post, learn how to avoid probate court in Boston!
Nobody wants to have to go through the probate process, especially if they plan to sell the inherited property once their loved ones have passed. By planning ahead, people are able to avoid probate, giving their families the peace of mind they need when dealing with a sad and difficult situation. Inheriting a property in Boston can be a complex process, especially when navigating the probate court system. Understanding how to avoid probate in Boston can save your family time, stress, and significant financial costs.
Why Avoid Probate?
Probate is a legal process that oversees the distribution of a deceased person’s assets. While it’s a necessary step in many cases, it can be time-consuming, expensive, and emotionally draining. Here are some key reasons to consider avoiding probate:
Public Record: Probate proceedings are public records, which can expose personal financial information.
High Costs: Probate fees, court costs, and attorney fees can significantly reduce the value of an inherited estate.
Time-Consuming Process: Probate can take months, or even years, to complete, especially in complex cases.
Here are some strategies to minimize or avoid probate in Massachusetts:
- Revocable Living Trust: A revocable living trust allows you to transfer ownership of your assets to a trustee, who manages them according to your wishes. By doing so, your assets bypass the probate process.
- Joint Ownership with Right of Survivorship: Owning property jointly with another person, such as a spouse or child, can streamline the transfer of ownership upon death.
- Beneficiary Designations: Designating beneficiaries for assets like bank accounts, investment accounts, and life insurance policies ensures they pass directly to the beneficiaries, bypassing probate.
- Gifting Assets: Gifting assets during your lifetime can reduce the size of your taxable estate and minimize probate costs. However, be aware of gift tax implications.
- Small Estate Affidavit: In Massachusetts, small estates may qualify for simplified probate procedures, reducing the time and cost involved.
Using A Trust
A person can set up a trust to ensure their assets will not be subject to the probate process. By setting up a revocable living trust a person can ensure items contained therein will not be subject to the probate process. The trust will need to be set up while the person is of sound mind and able to decide for themselves what will go into the trust. The trust can be thought of like a bucket, all assets the individual wants to place in the trust will then be set aside and managed accordingly.
Joint Ownership
When a person buys a home with someone else, they can enter a joint ownership agreement. With the right of survivorship. the property is passed to the surviving owner, without having to go through the probate process. It’s important to set this up when purchasing a property as adding someone to the deed after the fact may cost money.
Beneficiary Designations
Many times when setting up a bank account or life insurance policy, you will assign a beneficiary. By doing this, these items will not be subject to the probate process. A few states will allow you to create a transfer-on-death certificate for real estate you own, transferring the property after you die. Be sure that you keep your beneficiary designations up to date. Many people fail to make these changes after a divorce or after someone passes. This can lead to your ex getting everything or the asset having to go through the probate process.
Giving Inheritance Away
Before you die, you can consciously “give away” the majority of your assets to family members or other beneficiaries. If you don’t own the asset when you pass away, it won’t have to go through the probate process. Many assets, specifically items worth 11k or less can be given away without any federal tax penalty. You can gift a person this amount once per year and in doing so, you can significantly reduce the value of your assets that go through the probate process.
How Hilary Dunlavey Homes Can Help
At Hilary Dunlavey Homes, we understand the complexities of estate planning and probate. We can help you navigate these challenges and ensure a smooth transition. Whether you’re looking to sell an inherited property in Boston or explore estate planning options, our team of experienced and local real estate professionals is here to assist you.
Contact us today to discuss your specific needs and learn how we can help you avoid probate in Boston and protect your family’s future.
Looking to learn more? Contact us to see how to avoid probate court in Massachusetts !