Probate is the process by which the court looks at a will, accepts evidence that it is valid, and then oversee's the distribution of the decedent's assets and payment of decedent's debts according to that will.
Probate can also refer to the process where a court obtains evidence as to the assets and debts of an individual who has died intestate (without a will) and then oversee's the distribution of those assets and payment of those debts according to various state statutes.
Ok, so who needs to go through the probate process?
- The short answer is anyone who dies while owning assets.
- Exception - Estates with a total net-worth under $100K do not require full probate, but do require filing certain paperwork with the court.
How to avoid probate -
- Use Joint Tenancy or Tenancy By the Entirety to automatically transfer title to jointly owned property to the other owner upon one death.
- POD (Payable on Death) Accounts - You may be able to designate your bank or stock accounts as payable on death to a particular beneficiary.
- Inter-vivos (living) gifts - anything you give away during your life will not be part of your probate estate.
- Living Trusts - transferring title of assets to a trust removes the need to probate these assets.
Look for an upcoming post outlining the Probate Process in Arkansas.
