As you have made your way through the estate planning process, you may have heard probate’s reputation for being lengthy, costly, and complex. The last thing you may want to do is have your loved ones experience this headache while they are mourning your loss. On top of this, you may learn that probate records are public, and you likely prefer to keep certain property and financial records private. Considering all this, you may attempt to evade probate by not listing certain assets in your Last Will and Testament document. Well, please read on to discover why a seasoned Butler County will preparation attorney from Heritage Elder Law & Estate Planning, LLC, may not necessarily advise this. 

Do certain assets avoid probate when they are not listed in a will?

Well, you should know that the Pennsylvania probate court will distinguish between probate and non-probate assets. So you may rest easier knowing that the following assets are often kept out of this legal process anyway: 

  • Your assets held as joint tenants with right of survivorship (i.e., your house, your bank accounts, etc.) may pass directly to the surviving owner.
  • Your beneficiary-designated assets (i.e., your life insurance policy, retirement account, annuities, etc.) may be paid directly to these named individuals.
  • Your payable on death or transfer on death accounts that are set up to transfer directly to an appointed beneficiary immediately upon your passing.

It is worth mentioning that these assets may not sidestep probate under all circumstances. For example, the joint owner of your real estate property may predecease you. Or, your listed beneficiary on your life insurance policy may be missing and impossible to locate.

With this, these assets may become a part of your probate estate. This means that they will be used to settle your estate’s debts and taxes first. Then, Pennsylvania’s intestate laws may dictate its distribution, starting with your surviving spouse, children, parents, and siblings.  

What is a better estate planning method for avoiding probate?

Not noted above is that assets held in a revocable or irrevocable trust do not typically pass through probate. This is to say that, instead of intentionally concealing certain assets from your estate plan, you may incorporate them into a trust document of your choosing. 

With this method, you may assign a trustee to manage these contributed assets. What’s more, you may leave explicit instructions on how you wish for them to distribute these assets and to which designated beneficiaries after your death. This will all be done without court intervention.

If you are ready to improve your existing estate plan, please reach out to one of the competent Butler County estate planning attorneys. Even if you didn’t use Heritage Elder Law & Estate Planning, LLC for your initial estate planning, we will be happy to step in for this follow-up.