Probate refers to the legal proceedings by which an estate is settled after a person’s passing. Before beneficiaries can access their inheritances, applicable debts must be paid. Probate is also required to authenticate the will, inventory assets, locate beneficiaries, and file a final tax return. If you want to eliminate the hassle of such financial and family law proceedings, you can help your loved ones bypass it altogether by implementing the following arrangements.

How to Keep Assets Out of Probate

1. Create a Living Trust

Much like a will, a living trust allows you to distribute assets to beneficiaries. The similarities essentially stop there, though; property that's bequeathed in a will must be probated, while property transferred to a living trust can skip the proceedings.

As an added benefit, the terms of a trust are not made public, so your family’s privacy will be protected. Last wills, on the other hand, essentially become public record once they pass through probate.

2. Add Pay-on-Death Terms to Applicable Accounts

Life insurance policies, bank accounts, pension plans, stocks and bonds, and retirement accounts are just a few examples of assets that can carry designated beneficiaries as pay-on-death accounts. Upon your death, their funds will automatically transfer to the individuals whom you have named as recipients. Because they’ll be dispersed immediately, such accounts will avoid probate.

3. Hold Major Assets Jointly

While it’s true that attaching co-owners to your most significant assets adds a layer of financial vulnerability—should the co-owner declare bankruptcy, for example, you could end up losing the asset—it’s a viable way to avoid probate. Property that's owned jointly will automatically transfer to the surviving owner upon the death of the other.

For help implementing estate planning arrangements that will allow your loved ones to bypass probate, turn to O’Connor, Mikita & Davidson LLC. With three offices in Cincinnati, OH, this firm is backed by more than two decades of experience. As a full-service firm, they practice in a variety of areas, including personal injury law, family law, criminal defense, civil litigation, and bankruptcy law. To request an estate planning or family law consultation with a member of their team, call (513) 793-5297. Explore their practice areas online.