Sitting down to create a will is a responsible act for the good of your family. However, a will may not prove adequate to protect your family after death.
Even with a directive, your will may stall out in probate, leaving your family with little money to stay the course. Discover some of the ways you may get around probate and give your loved ones a bit of cash during a difficult time.
Probate is a long process
During probate, the judge ensures that those in your will inherit what you indicate. However, this only happens after your creditors have a shot at recovering any debts you owe. With all the procedural issues that go into probate, your will may take a long time to make it to the dispersal portion.
Ways to work around probate
Some fiduciary tools may help facilitate the quicker disbursement of money to your family. One of the most popular is a trust account. This account allows you to withdraw cash or property from your name and put it into the trust. You then name trustees who gain control over the trust upon your death. Insurance policies also allow you to name beneficiaries to receive policy money after you die. Neither trusts nor insurance policies go through probate.
Help yourself now
Utilizing a trust as a way to get money to loved ones after your death also benefits you now. You reduce your tax bracket by taking property and assets out of your name. A trust is often safe from lawsuits, and the items in it remain shielded from seizure by a court.
Ensuring that your family remains cared for until your estate finishes its probate journey is essential. Consider adding another tool to your estate plan to do just that.