You might be wondering what happens to your stuff after you’re no longer around. Today, we’ll explore the two primary paths through which assets are transferred to beneficiaries after one’s passing – one entails legal proceedings, while the other offers a straightforward, more hassle-free process.
Outside of Court
The easiest option is passing assets outside of court. This happens automatically if you structure your estate plan to do so. Here are some ways that occurs:
- Joint Ownership: If you own something jointly with someone else, like your house or a bank account, and one of you passes away, the other automatically gets full ownership.
- Designated Beneficiary. If you’ve named a beneficiary for things like life insurance, retirement accounts, or annuities, those assets will go straight to them when you’re gone, no court drama required.
- Trusts. They’re like your secret weapon for skipping the whole probate process and getting your assets straight to your loved ones. We recommend the following articles for brushing up on trusts:
Through the Court
Now, onto the court stuff – probate. If you’ve got a will (nice planning, by the way!), it’s your plan for where your assets should go. Even if you don’t have a will, the state has a default plan for those assets. Depending on the value of your total assets and how they’re set to pass to your beneficiaries, your estate may go through the probate court process.
If you have a will, your named executor will step in (or the court will name one if no will exists). This process will settle any debts, taxes, and probate fees, and then divvy up your assets. Probate is public, time-consuming, and expensive so you’ll typically be better served by avoiding it.
If you’ve got any questions or need a hand with your estate planning, we’re here to help! For Virginia and Maryland residents, when you’re ready, we’re ready. Schedule a time to chat to get started.