We all want to leave a little something behind for the people we love when we die. To ensure that your hard-earned assets are distributed per your wishes, it’s important that you create a will. Without one, Florida intestate laws would step in and determine how your assets are distributed. And you might not like this.
However, creating a will is never enough. If you are concerned about the cost of probating your estate, you might be wondering whether there is anything you can do about it. Here are a couple of steps you can take to minimize the cost of probating your estate or bypass probate altogether so you can leave more inheritance for your loved ones.
Setting up a trust
A trust, just like a will, allows you to designate inheritance for your loved ones. Unlike a will, however, assets that are held in the trust are managed by the trust’s instruments. Also, assets that are held in a trust do not go through probate. Thus, any asset held in a trust will automatically pass down to your beneficiaries without incurring any costs associated with probating it.
Setting a joint ownership
Any asset put under a joint tenancy with the right of survivorship automatically passes down to the surviving co-owners upon your passing. Besides reducing the size of your estate, this can also be a great strategy if you are looking to bypass probate. Before opting for joint tenancy with the right of survivorship, however, you want to be sure that your beneficiaries are trustworthy and responsible.
Estate planning is never a “one-size-fits-all” exercise. Understanding Florida estate planning and probate laws can help you work out a plan that meets your unique situation.