Feb 20, 2025
You may have been told by family, friends, or even your financial planner that you should avoid the probate process by adding a joint owner to your financial accounts and/or by designating a beneficiary for your assets. But be aware. While you save upfront costs, you lose control of your assets and open your family to unintended consequences, which can be much more costly in the long run.
There is a better way to avoid probate. We encourage you to share this discussion with the people in your life so that everyone understands the smart alternatives to avoiding the probate process.
WHAT YOU NEED TO KNOW
(00:00) Episode introduction.
(02:47) Probate is the legal process by which we carry out a person’s wishes at the time of their death when they own assets in their name only with no designated beneficiary.
(05:50) Some people want to avoid probate to avoid the associated fees. This can be a good strategy if done correctly.
(07:39) Avoiding probate does not avoid taxes.
(10:45) Joint ownership of assets or passing assets directly to a beneficiary can unintentionally undermine the wishes of the deceased.
(11:48) After the death of a spouse, joint ownership of assets during a second marriage can jeopardize the inheritance of the children from the first marriage.
(13:45) A Will does not go through probate if the assets named in the Will are jointly owned.
(16:06) Probate can be avoided when assets are transferred to a trust at the time of a person’s death. The assets are protected immediately, and they are not subject to the five-year lookback period for Medicaid eligibility.
(20:40) Trusts are a great way to protect your assets for your family’s use, avoid unintended consequences, and ensure that your wishes are honored.
ABOUT BELLOMO & ASSOCIATES
Jeffrey R. Bellomo, the founder of Bellomo & Associates, is a licensed and certified elder law attorney with a master’s degree in taxation and a certificate in estate planning. He explains complex legal and financial topics in easy-to-understand language.
Bellomo & Associates is committed to providing education so that what happened to the Bellomo family doesn’t happen to your family. We conduct free workshops on estate planning, crisis planning, Medicaid planning, special needs planning, probate administration, and trust administration. Visit our website (https://bellomoassociates.com/) to learn more.
LINKS AND RESOURCES MENTIONED
Bellomo & Associates workshops:https://bellomoassociates.com/workshops/
- Life Care Planning
- The Three Secrets of Estate Planning
- Nuts & Bolts of Medicaid
For more information, call us at (717) 845-5390.
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WAYS TO WORK WITH JEFFREY BELLOMO
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