Probate is the legal process of transferring a person’s assets to their heirs after they pass away. It can be a time-consuming and costly process, and it can be especially challenging for small business owners. However, there are steps that small business owners can take to avoid probate and ensure that their assets are transferred smoothly to their loved ones
Create a Will
One of the most important things a small business owner can do to avoid probate is to create a will. A will is a legal document that specifies how you want your assets to be distributed after your death. It can also name an executor to manage the probate process. Without a will, your assets will be distributed according to state laws, which may not align with your wishes
Use a Trust
One way to avoid probate is to use a trust. A trust is a legal arrangement in which a third party, known as the trustee, holds assets on behalf of a beneficiary. There are several types of trusts that small business owners can use, including revocable living trusts and irrevocable trusts. Trusts can be a useful tool for avoiding probate because they allow you to transfer ownership of your assets to the trust, which means they are not subject to probate
Many assets, such as retirement accounts and life insurance policies, allow you to designate beneficiaries. Designating beneficiaries means that the assets will pass directly to the named individuals, bypassing the probate process. It’s important to keep your beneficiary designations updated to ensure that your assets are distributed according to your wishes
Keep Records in Order
Probate can be a lengthy process, and it can be made even more complicated if the deceased person’s financial records are not in order. As a small business owner, it’s important to keep your financial records organized and up to date to make the probate process as smooth as possible for your loved ones
Probate can be a challenging and time-consuming process for small business owners. However, there are steps you can take to avoid probate and ensure that your assets are transferred smoothly to your loved ones. These steps include creating a will, using a trust, designating beneficiaries and keeping financial records organized. By taking these steps, you can help protect your loved ones and ensure that your assets are distributed according to your wishes.
This article was published by a third party and is intended for general informational purposes only and does not necessarily represent the views of Legacy Assurance. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal or financial advice. You should consult with an attorney regarding any questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about a last will and testament and other estate planning matters, visit our website at legacyassuranceplan.com.