California probate law governs estate matters when a family member or
loved one passes away. Probate laws insure that creditors are paid and
that assets are properly distributed to the descendants, or "heirs," of
the deceased's estate. Probate is a long and expensive process, however
probate can be avoided through a carefully designed estate plan.
Methods Of Avoiding Probate
Anyone can avoid probate if plans are made ahead of time. Among the methods of avoiding probate are the following:
* Living trusts. Certain assets, such as a home, savings, and
investments, can be transferred into living trusts that do not pass
through probate upon death. The trust property is not part of your
estate because title to the assets is transferred to the trust. A
trustee has legal control over the trust property and is bound by
fiduciary duty to exercise that legal control for the benefit of the
beneficiaries named in the trust. After your death, the trustee can
quickly transfer the trust property to the beneficiaries you have
selected, without probate. Living trusts are popular and effective
because:
1. they are usually administered informally outside of the court
2. they are more flexible in resolving beneficiary disputes without court involvement
3. assets can be distributed faster than probate (usually in about 5 months after death)
4. they are less expensive to administer than probate matters
5. they are effective during periods of incapacity as well as at death
6. they are easily created.
* Joint tenancy. Assets are not probated if they are owned by two or
more people, termed "joint tenants" or similar wording. When a joint
tenant dies, the other joint tenant(s) take 100 percent ownership of the
asset. A joint tenancy takes priority over the provisions of a will or
trust.
* Small estates. Under the California Probate Code, estates of less than
$100,000 are exempt from probate. In determining this amount, some
assets are not considered probate assets, such as living trusts, life
insurance, IRAs, 401Ks, and assets held in joint tenancy. The assets in
estates valued less than $100,000 are turned over to the executor of the
will and distributed according to the will, outside of probate. If
there is no will, assets are distributed to the deceased's nearest
relatives (under rules of intestate succession).
* Spousal property petition. The spouse of a deceased person can file a
spousal property petition with the court to change ownership of the
deceased's assets to the surviving spouse. This procedure is a
simplified version of probate, which takes considerably less time and
expense than regular probate.
* Death benefit assets. Certain assets which have death beneficiary
designations avoid probate. These types of assets include life
insurance, IRAs, qualified retirement plans and some annuities.
Approved Cash Advance
If you are the beneficiary of a living trust, joint tenancy, or other
estate plan that was set up to avoid probate, Approved Cash Advance can
provide you with the funds you need now. Although much quicker than
probate proceedings, many of these avoidance methods can still take
time.
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