The last thing you want your loved ones to be burdened with after you die is the overwhelming process of probate. Some probate periods are short, but others seem to never end. On The Probate Nation TV show, SmolenPlevy principal Dan Ruttenberg discusses good and bad probate avoidance techniques.
Probate is the legal process where a deceased person’s final debts are paid and remaining probate assets are distributed to his or her heirs. Without proper planning, it can be costly and time-consuming. One probate avoidance technique Ruttenberg suggests is a revocable trust. “When you put a probate asset into a revocable trust, you’ve converted it into a non-probate asset,” says Ruttenberg. “It’s like a complex beneficiary designation. All the instructions are built in for your beneficiaries.”
The other avoidance techniques discussed on the show are:
- Jointly owned financial accounts;
- Jointly owned real estate;
- POD/Payable on Death or TOD/Transfer on Death designations;
- Life insurance beneficiary designations;
- Retirement account beneficiary designations; and
- Lifetime and deathbed gifts.
Some of these avoidance techniques have significant downsides, and most people should be guided through the process. Ruttenberg says, “It is critically important to review your estate plans on a regular basis.” Certain aspects of your life may change with time; it is crucial to keep your estate plan up to date to ensure your assets are well-managed.
Watch Ruttenberg on The Probate Nation here.
About the Author
Daniel H. Ruttenberg
Daniel H. Ruttenberg, JD, CPA, LLM is a principal with the firm. Mr. Ruttenberg received his Bachelor of Science degree with a double major in Accounting and Finance from the University of Maryland. He earned his Juris Doctor with Honors from George Mason University School of Law and his Master of Laws in Taxation with Distinction from Georgetown University Law Center. Mr. Ruttenberg also served as the Director of the Fairfax Bar Association (FBA) for seven years. During this period, he was also elected president – the youngest in FBA history and served as a member of the Board of Directors for the Fairfax Law Foundation.
