Strategies for Avoiding Probate

Proactive Planning to Protect Your Estate, Your Family, and Your Privacy

For anyone who has served as an executor of an estate, you may already be familiar with how cumbersome, time-consuming, and stressful the probate process can be from start to finish. One of the primary goals of a well-designed estate plan is to avoid probate whenever possible through thoughtful, proactive planning.

Probate must be avoided in advance—once someone passes away, it is too late to implement probate-avoidance strategies. Depending on the size and complexity of the estate, probate can be expensive, delay beneficiaries from receiving assets for months or even years, and make a family’s financial affairs public record.

We help clients understand the strategies available to avoid probate and integrate those strategies into a broader financial and estate plan.

Why Avoiding Probate Matters

The probate process can:

• Delay asset distribution to beneficiaries

• Increase legal and administrative costs

• Expose estate details to public record

• Create additional stress for surviving family members

• Complicate business, real estate, and multi-state estates

With proper planning, much—or all—of the probate process can often be avoided.

Two Primary Strategies for Avoiding Probate

There are two main approaches to keeping assets out of probate:

1. Using beneficiary designations on accounts

2. Establishing trusts to own assets

The appropriate strategy depends on the complexity of the estate, asset types, and long-term objectives.

Using Beneficiary Designations (TOD Accounts)

One of the simplest ways to avoid probate for non-retirement accounts is to ensure beneficiaries are properly designated.

Many brokerage accounts, checking accounts, and savings accounts allow for a Transfer on Death (TOD) designation. When a TOD is in place:

• Assets pass directly to named beneficiaries

• The transfer occurs by contract, not by probate

• The custodian distributes assets upon proof of death

This approach can be very effective for non-complex estates, provided beneficiary designations are kept up to date.

TOD Deeds for Real Estate

Some states allow a Transfer on Death (TOD) deed, which permits property owners to name beneficiaries directly on the deed.

When allowed:

• Ownership transfers automatically at death

• Probate can be avoided for the property

However, not all states permit TOD deeds. In states where TOD deeds are not available, owning real estate in your individual name may require the establishment of a trust to avoid probate.

Establishing Trusts to Avoid Probate

For many estates—especially those involving real estate, businesses, or multiple accounts—trusts are the most comprehensive solution.

Assets owned by a trust avoid probate because they pass by trust, not by will.

Revocable Trusts (Living Trusts)

A revocable trust, often called a living trust:

• Allows you to maintain full control of your assets during your lifetime

• Can be changed or revoked at any time

• Avoids probate for assets titled in the trust

• Provides privacy and administrative efficiency

Revocable trusts are commonly used for probate avoidance and estate organization.

Irrevocable Trusts

An irrevocable trust also avoids probate and may provide additional benefits depending on structure:

• Asset protection from long-term care costs

• Protection from creditors

• Potential estate tax reduction for larger estates

• More control over how and when beneficiaries receive assets

Once established, irrevocable trusts typically cannot be changed easily, which is why careful planning is essential.

Choosing the Right Strategy

There is no one-size-fits-all approach to avoiding probate. Some individuals may benefit from:

• Simple TOD designations

• Revocable trusts

• Irrevocable trusts

• A combination of strategies

The right solution depends on:

• Asset types and values

• State laws

• Family dynamics

• Long-term care considerations

• Estate tax exposure

• Privacy concerns

We help clients evaluate their estate holistically to determine the most appropriate strategy.

Contact Us . . . .

All of our services start with a complimentary consult. No high pressure sales tactics. We are financial planners, not salesmen.

About Our Firm:  Greenbush Financial Group is an independent registered investment advisory firm based in Albany, New York, that provides four main services to clients: fee-based financial planning services, investment management, employer-sponsored retirement plans, and retirement planning services.  The firm serves clients locally in the Albany region and virtually across the United States.

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