Probate, the legal process of validating a will and distributing assets, can be a lengthy and costly affair, but often overlooked are those “forgotten” assets – those accounts, policies, or possessions whose existence or location has slipped from memory or communication with heirs. These assets, while seemingly small individually, can collectively add up to a significant portion of an estate, potentially triggering probate even if a robust estate plan is in place for larger holdings. Proper planning and diligent record-keeping are crucial to ensure these overlooked items are accounted for and distributed smoothly, bypassing the often arduous probate process. A comprehensive approach, encompassing thorough asset inventories and beneficiary designations, is essential for safeguarding your estate and providing peace of mind for your loved ones.
What types of assets are often ‘forgotten’ in estate planning?
Often, it’s not the major assets like real estate or large investment portfolios that cause probate headaches, but rather the smaller, easily overlooked items. These include unclaimed property like uncashed checks, forgotten bank accounts (an estimated $8 billion in unclaimed funds sits in U.S. banks!), matured savings bonds, old life insurance policies with lapsed premiums but still holding value, digital assets like online accounts and cryptocurrency, and even small business interests. According to the National Association of Unclaimed Property Administrators, one in ten people have unclaimed property waiting for them. These assets, while seemingly insignificant on their own, can accumulate over time and necessitate probate if not properly addressed. It’s easy to set up a system to catalog and manage them before it’s too late.
Can a trust help me avoid probate for these smaller assets?
A properly funded revocable living trust is the cornerstone of probate avoidance, and it extends to these forgotten assets as well. By transferring ownership of all assets, including those smaller, often-forgotten accounts, into the trust, you ensure they bypass probate upon your death. The trustee, whether yourself during your lifetime or a successor trustee after your passing, manages and distributes these assets according to the trust’s terms.
“A trust isn’t just for the wealthy; it’s a tool for responsible estate planning for anyone wanting to control the distribution of their assets.”
This includes provisions for handling unclaimed property or digital assets, outlining specific instructions for locating and accessing these items. It is estimated that approximately 50% of estates with a gross value over $1 million utilize trusts for probate avoidance.
What happened when Mr. Abernathy didn’t keep track of his assets?
Old Man Abernathy was a meticulous gardener, obsessed with prize-winning roses, but he was, to put it mildly, disorganized when it came to his finances. After he passed, his daughter, Sarah, was shocked to discover a forgotten safe deposit box containing stock certificates from a company he’d invested in decades prior. There was also a small, unopened account at a credit union he’d used briefly during a job transfer. Locating these assets took months of painstaking effort, requiring numerous phone calls, document requests, and ultimately, legal fees. The relatively small value of these assets, coupled with the cost of the probate proceedings necessary to transfer them, significantly diminished the inheritance Sarah received. It was a frustrating and unnecessary ordeal that could have been easily avoided with a simple asset inventory and clear instructions.
How did the Millers ensure a smooth transfer of their estate, including digital assets?
The Millers, a retired couple, were proactive about estate planning. They created a comprehensive asset inventory, listing everything from their real estate and investments to their digital accounts – email, social media, online banking, even cryptocurrency wallets. They meticulously designated beneficiaries for all applicable accounts and included a “digital asset appendix” in their trust document, outlining specific instructions for accessing and managing these accounts. When Mr. Miller passed away, his son, David, was able to seamlessly access his father’s online accounts and manage his digital legacy without any legal hurdles or prolonged delays. They had even created a password manager with securely stored login credentials, accessible to David as designated in the trust. It was a testament to their foresight and planning, ensuring a smooth and efficient transfer of their estate, large and small.
<\strong>
About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- living trust
- revocable living trust
- estate planning attorney near me
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
>
Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “What is probate and how can I avoid it?” Or “What is summary probate and when does it apply?” or “What is the difference between a revocable and irrevocable living trust? and even: “Does bankruptcy affect my ability to rent a home?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.