How to Avoid Probate in Alabama
The Alabama probate process, just like in any state, can be expensive, confusing, and time-consuming. It's no wonder why probate avoidance is a priority for many when it comes to a deceased person's assets.
In this blog, we'll go over all things probate court—estate plans, transferring assets, joint ownership, and more, and give you some tips to avoid probate court.
Avoiding Probate With a Living Trust
Creating a living trust can help you avoid probate in Alabama. Essentially, what you're doing is deciding now what real property, remaining assets, and things like your bank account will go to what family members.
Maybe it's as simple as wanting everything to go to your surviving spouse. Or maybe things are more complicated than that. Regardless, make these decisions now and choose a successor trustee. This person will handle things after you're gone. But that's not all—it's essential that you then transfer ownership of your property to your trust.
Once you pass away, the successor trustee you chose will be able to transfer ownership without going through the probate process.
What About Joint Ownership?
Joint ownership in Alabama is actually quite simple, but there is something important you can do to help your family avoid probate court later on. If you own property with someone, whether it's a small estate or something more high value, you'll want to include the right of survivorship in your last will.
This means that when one owner passes away, upon their death the property (as well as joint bank accounts and things of that nature) will automatically pass to the surviving owner—no probate court required.
The most common situation involving multiple owners is between married people. If you and your spouse have joint bank accounts, vehicles, real estate, etc., you'll want to make sure to follow probate laws to avoid probate court.
In the state of Alabama, for example, each owner must own equal share.
What About Other Bank Accounts?
When it comes to your personal checking and savings accounts, you can do some strategic estate planning with your last will and testament to make sure transferring assets goes as smoothly as possible.
Add a "payable-on-death" designation to your accounts. This will ensure that, while you're alive, you have complete control over your accounts, but upon your death the named beneficiary will then take over. The deceased person could have spent every dime, but the transfer will still apply without the need for a probate attorney or probate costs.
These kinds of beneficiary designations are important to make while you're still alive to help your family avoid court costs, a lengthy legal process, and unnecessary extra stress after your death.
Estate Planning to Avoid the Probate Process
The best way to avoid probate in Alabama is to invest in estate planning now. Knowing how probate laws work, making beneficiary designations ahead of time, and consulting with a professional personal representative will help a lot.
Whether you're just now thinking about the future or you're currently dealing with probate procedures, whether you're dealing with smaller estates, life insurance policies, or a confusing last will and testament, Kristin Waters Sullivan can help.
Kristin Waters Sullivan specializes in estate planning and all things probate in Alabama—small estate probate, formal probate, probate assets, and more. She's ready to help you and your family do what needs to be done during a difficult time—no unnecessary stress required.