Without proper estate planning, if you pass away, at least some of your assets will need to go through probate. Probate is a legal process that occurs after someone dies where assets are inventoried, debts are paid, and assets are distributed either according to a will or by law. Probate is a lengthy process that is likely to take at least 6 months and may take as long as a year or more. During this time, your loved ones’ access to your probate assets would be limited even if they will ultimately receive your assets at the end of probate.

Setting up a revocable living trust is a common planning tool that you can use to avoid probate entirely. Whelan Law PLLC can help you set up a revocable living trust to avoid probate and make sure all your assets are kept private and flow directly to your loved ones without Court involvement or the added fees and legal costs often incurred during probate.    

In the meantime, however, there is an easy step you can take today to ensure that individual accounts are kept out of probate. Bank accounts and brokerage accounts allow you to designate a “Payable on Death” or “Transfer on Death” beneficiary who will receive the balance of funds in the account when the owner passes away. Adding a Payable on Death beneficiary will keep the money in those accounts out of probate and ensure that your loved ones have access to these funds in the months following your death.

Many banks allow you to make these designations easily within minutes online if you use online banking. For example, for Bank of America accounts “the account owner can change or add POD beneficiaries by signing into Online Banking and selecting the account, then selecting Manage next to Beneficiaries in the Features menu or on the Information & Services tab.” (See https://www.bankofamerica.com/deposits/beneficiaries-faqs/.) Other banks may require that you send in a form. I suggest googling “Payable on Death beneficiary” and your bank name to learn the simple steps you can take to designate a Payable on Death beneficiary for your accounts.