What is probate, and can it be avoided?
by Admin
Posted on 07-06-2024 03:21 PM
Normally, if the owner of real estate dies, the real estate must be transferred through the probate process. Probate can be avoided by executing a “ladybird deed” during the owner’s lifetime.
What is a deed?
when an owner is alive, florida real estate is transferred from one party to another using a deed. A deed must identify the grantor(s) and grantee(s), contain the legal description for the property, and be signed by the grantor(s), two witnesses, and notarized. The grantor is the person giving an ownership interest and the grantee is the person receiving an ownership interest. The notary can act as your second witness, but must sign in the witness portion of the document in addition to the notary certificate.
What is an executor?
A will and testament is an important legal document that outlines your wishes regarding the distribution of your estate and names your executor(s) – these are the people that will take care of distributing your assets after you pass. They will be responsible for securing assets and using them to pay any inheritance tax owed, or settle any outstanding debt. This appointed executor will then distribute the remaining assets according to the wishes set out in a will.
A trust is a legal arrangement that you can put assets into so that your chosen heirs can access them. In particular, a trust allows your estate to avoid probate for the assets in the trust. This can save time and money if you know that you want to pass certain assets to certain beneficiaries. Assets you move into some kinds of trust are also no longer part of your estate, which means your taxable estate is smaller. Since a living trust covers distribution of your assets, some people create one instead of or in conjunction with a will.
If you want to retain control of the assets you place into your trust while you’re alive, a living trust is the way to go. A living trust is one you create while you’re still alive, and gives you—the grantor—full access to all of the assets within the trust. When you die, your named trustee takes control of the trust and the assets held inside. If you have young children and worry about what they’ll do with an inheritance when you die, a testamentary trust could be a wise choice. A testamentary trust is created by your will upon your death, and specifies when and how you want assets distributed to your children.