Probate will not necessarily be an easy process for your heirs. It will cost money, it will take time and it could bring a certain amount of stress. As such, many Illinois estate planners will want to take action to help their heirs avoid probate wherever possible.
One strategy for avoiding probate involves the use of a death beneficiary. When someone is a death beneficiary of your bank account, for example, he or she will assume ownership of your account as soon as you pass away.
More information about death beneficiaries
A lot of different kinds of financial accounts and assets permit the designation of a death beneficiary. As soon as you die, the person named as a death beneficiary will receive ownership of your assets allowing your heir to avoid probate proceedings for those assets.
These are some of the types of death beneficiary designations you might take advantage of in this regard:
- Payable on Death Accounts (PODs): These are accounts that a specific beneficiary will assume ownership of when you die. It's easy to set up a death beneficiary on your bank account, for example, by simply requesting it from your bank. After you die, your beneficiary will arrive at the bank with appropriate documentation to claim ownership the assets.
- Individual Retirement Accounts (IRAs): Every IRA has a beneficiary designation that the IRA owner must fill out. That beneficiary will receive the contents of the account upon your death. This beneficiary supersedes any information you have included in your will, so it's important to keep it up to date and accurate according to your wishes.
- Transfer on Death Registrations: Transfer on Death Registrations give you the ability to bypass probate by assigning a specific asset to be received by another person when you die. The process involves signing a registration statement.
A great addition to any estate plan
The incorporation of transfer on death beneficiaries to your estate plan is a great way to make things easier on heirs after you pass. When you learn more about this excellent strategy, you can employ it more effectively as a part of your and your family's estate plan.