It is possible to learn how you can avoid Probate in PA with the help of a skilled attorney. Depending on your particular situation, an attorney can help determine which strategy will work best for you. Continue reading to learn more about Probate in PA and five strategies to avoid it.
What to Expect During the Probate Process in PA?
If you’re unfamiliar with Probate, it may seem overwhelming, but it doesn’t need to be. Instead, Probate is the process when the state administers the deceased’s estate. In Pennsylvania, if the person who passes away has any assets in their name, their estate will need to go through Probate (whether or not they have a Will).
The court will administer your estate according to the Will. If there’s no Will in place, they will administer it by the state’s intestate succession laws. To learn more about how to Probate your estate without a will, click here.
5 Strategies on How You Can Avoid Probate in PA
You can avoid Probate in Pennsylvania if all of your assets are jointly made a year and a day of someone passing. Please note that means everything including cars, real estate, small checking accounts with $5,000.While moving all your assets to another person might not always be possible, with the help of an attorney, there are strategies available you can put in place to make the process easier.
Here are five potential strategies that can help you avoid Probate or make it more manageable. It’s important to note that you should consult with an experienced Pennsylvania Probate attorney (someone local to your area) to determine if any of the below strategies are suitable for your situation.
Living Trusts
A Living Trust allows you to transfer the ownership of your assets to another person. However, the type of Trust you choose to create will determine how the court transfers the assets. A Revocable Living Trust keeps assets in your name. Upon your passing, the state immediately transfers those items to the trustee. Make note that this Trust doesn’t always guarantee you’ll avoid Probate.
An Irrevocable Living Trust immediately moves asset ownership to the trustee, and you no longer own or control those assets. The most significant benefit an Irrevocable Trust offers is that it prevents your assets from being used to pay for long-term medical care. Learn more about how Trusts can help protect your assets from long-term care here.
There are advantages and disadvantages to both types of Trusts. Consult with an attorney to determine if this is a good strategy for you.
Joint Ownership
If you jointly own property with another person (typically a spouse), when you pass, ownership belongs only to the surviving person. These assets will avoid the Probate process. Unlike an Irrevocable Living Trust, you can still maintain joint control over the asset while you’re still alive. Jointly owned possessions can include cars, rainy-day funds, bank accounts, and real estate properties.
Payable-On-Death (POD) Policies
POD policies allow you to remain in control of your funds or assets. Then after passing away, your selected beneficiary can claim them without having to be included in Probate for that asset or Probate all together, if everything is joint. These policies can include savings accounts, certificates of deposit, stocks, or bonds. Those assets are still taxed, however.
Give Away Your Assets
Over the course of your life, you could choose to give away or gift your assets to other people, organizations, or charities. Gifting your possessions while you’re living is an easier way to reduce your possessions to avoid Probate or shorten its process. Currently, you are able to gift $15,000 to anyone in a calendar year, without being subject to tax by you or the giftee.
Maintain an Estate Worth $50,000 or Less
This is a challenging strategy, but in Pennsylvania, not every estate requires Probate. If you can maintain an estate and assets that total value is less than $50,000, you can avoid the normal Probate process. There’s a more minor and simple process your family can use instead.
Unfortunately, this isn’t always a viable strategy for many. Consult with an attorney to review your estate and assets to see if it qualifies for the simpler Probate process.
Seek Help from a Trusted Pittsburgh Probate Attorney
If you’re planning for the future or need a quick resolution regarding Probate, we’re here to help. Our Auld Brothers Law Group team regularly works with local Pittsburgh individuals and families. We listen to our clients, answer their questions, and help them make the best choice for their future.
Contact us to schedule a free 30-minute consultation to learn how we can help you avoid Probate or shorten its process.