After Death Planning: "In and Out of Probate"

Wills have been referred to as "tickets to probate court after death." In large estates, the only way to legally transfer assets in accordance with the will is through the probate process. However, wills only control probate assets, that is, those assets that can be transferred by the probate court. Some assets do not have to be probated and generally are not controlled by a will. These assets include: Life insurance proceeds, which are paid to the beneficiaries designated in the policy. Property held in joint tenancy, which provides that, upon the death of one joint tenant, the deceased person's interest automatically passes to the surviving joint tenant(s). Property held in living trusts. Because these assets are transferred by means other than the probate process, a will generally does not control how they are distributed. Example: A person names her spouse in a beneficiary designation to receive her life insurance proceeds on her death. In her will, she names her sister to receive those same proceeds. Because the proceeds are paid directly to the spouse, they never become part of the deceased person's estate. Therefore, her will, which only controls her estate, cannot override the beneficiary designation. For More Information On Avoiding Probate Court Please Visit http://www.avoidproabatecourt.com