A lot of people don’t think much about how they’re going to title their home, but it’s not really something that should be brushed off. So, with this in mind, let’s take a look at how you should title the home.

In fact, there are multiple ways that you can hold the title to your home. You may do so solely as yourself, in joint tenancy or as tenants in common. Sole ownership is pretty self-explanatory. The title is in your name only, even if you own the property along with others.

Joint tenancy is a way to hold the title in a way that includes more than one person. For example, if you and I own a home together, and one of us passes away, joint tenancy means that the home automatically passes to the other person without having to go through the probate process.

Tenancy in common means that you and I would hold the property together, but if one of us dies, interest is then distributed according to the will or state law (if there is no will).

When deciding how to title your home, you need to decide who you want to end up with your interest in the property. If you are married, joint tenancy might be the best choice. However, if your spouse has credit issues, you’re probably not going to want anyone with credit issues on the title.

Also, you’re going to want to be very careful when adding someone other than your spouse to the title as a joint tenant. You should speak with a tax adviser before doing anything because any adult children could lose potential tax benefits. For example, if you have a son listed as joint tenant, any creditors he has could come after your property. If there are siblings he doesn’t get along with, he can file an affidavit of survivorship and the property can be put solely in his name, even if that’s not what you wanted.

If you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. Let us help ease your stress and give you a plan.

We talk about probate a lot, and just like everything else, it can be a little too much to deal with. So, what if you don’t want to deal with any of that? Is there a way for you to avoid it altogether?

In fact, there is!

Let’s start with Revocable Living Trusts:

• Revocable Living Trust

Living trusts were created to give people a way around the probate process. One particular advantage to having any valuable property in a trust is the fact that it is not considered to be part of the probate estate. Keep in mind, though, that this is counted as part of the estate for federal tax purposes.) This is because someone called the trustee, and not you as an individual, owns any property left in the trust. After you pass away, the trustee can both easily and quickly pass the property in the trust to whomever you left it to—and avoid the probate process. You can also specify in the trust document who you want to inherit the property, like family or friends (just as you can in a will).

• Pay-On-Death Accounts and Registrations

One interesting thing you are able to do with any bank accounts or retirement accounts you have is that you can convert them into Pay-On-Death accounts. All you need to do is fill out an easy form and then list somebody to be the beneficiary. At the time of death, any money in these accounts will go directly to the listed beneficiary (and avoid the probate process). You can also do the same thing with security registrations, and even vehicle registrations (though only in some states). Some states also allow for P.O.D. real estate deeds that use a deed that doesn’t come into effect until your death.

So, here are just a couple of ways to avoid the probate process, but let’s look at a few more:

You can avoid probate simply by jointly owning property or by giving gifts. Let’s go into a bit more detail on each of those things below.

• Joint Ownership of Property

This method gives you a quick and easy way to completely bypass the entire probate process whenever the first owner passes away. There are, in fact, several ways that this can be accomplished. To take title along with someone else and avoid probate, all you have to do is state on the ownership papers (like a real estate deed, for instance), how you want to hold the title. Normally, no other documents are needed, and when one of the owners passes away, the property then transfers over to the joint owner, without ever having to worry about probate. Let’s see some other ways to avoid probate below:

1. Joint tenancy with the right of survivorship

Any property owned in joint tenancy will pass automatically to the surviving owner when one of them dies.

2. Tenancy by the entirety

In some states, married couples may often take a title not in joint tenancy, but in what is known as “tenancy by the entirety.” It is similar to joint tenancy, but only married couples may use it. Even same-sex partners may do it in some states, so long as they have registered with the state. Both ways avoid probate in exactly the same way.

3. Community Property with right of survivorship

People in the following states: Alaska, Arizona, California, Idaho, Nevada, Texas or Wisconsin may be able to claim community property with right of survivorship if they are married and co-own property with their spouse. In this way, if one spouses passes, the other automatically owns any assets upon death. In California, those with a same-sex partner may also doo this as long as a domestic partnership has been registered with the state.

To finish our simple guide on how to avoid probate, let’s check out a couple of different ways to avoid probate if you have a small estate.

The truth of the matter is that if your estate is small enough, you may not even have to worry about probate at all. Almost every state now offers something in the way of shortcuts, or even ways around probate altogether in some cases, for small estates. Although, be aware that each state defines that term differently, so check out the rules and regulations for your state.

Two basic shortcuts for small estates are:

• Claiming Property with Affidavits

If the total amount of value for everything is below a certain number, anyone who gets your personal property (that is, anything except for real estate) could potentially skip probate altogether. The exact amount can and does vary from state to state, though, and it can vary by quite a good amount.

If an estate qualifies, any inheritor may draw up a short document that states he or she is entitled by will or state law to a certain item of property. This document (the affidavit) is signed under oath. Then, whenever the institution or person holding the property (such as a bank where the deceased had an account) gets the required documents (the affidavit and a signed copy of the death certificate), it can then give out any monies or other property.

• Simplified Court Procedures

These are defined according to individual state laws and are a quicker, easier version of the probate process. Probate Court will still be involved, but it has much less control over settling an estate. In many states, these processes are even simple enough to handle without needing a lawyer. Because of this, they often save a lot of money and time.

If you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. Let us help ease your stress and give you a plan.

As with anything involving the law, the probate process can be difficult to wrap your head around on your first go or your fifth. It’s made a little easier if you can hire an attorney experienced in the probate process, but things should go smoothly, so long as everything is in order before death.  Even if they’re not, don’t fret! Probating a will in New Jersey is divided into six steps.

• Validating the will
• Appointing an executor or executors
• Taking inventory of the estate
• Paying all claims against the estate
• Paying all estate taxes
• Distributing any and all remaining assets

In case that’s still a bit confusing, let’s take a closer look at some of the major steps in the probate process.

• Obtain Probate Papers and Qualify as an Executor

Probating is a word that can look scary at first, but really, it’s just a fancy word that means determining the genuineness of a will, and this process begins after death. It can be performed either by a surrogate or the Superior Court of the county where the deceased lived when they died. A personal representative or executor can be appointed by going to the surrogate or Superior Court, though some documents are needed.

Those include: the original will, the certified death certificate, and unless the will is self-proving, at least one witness who signed the will and can prove it is his or her signature on the will.

However, if these steps are not followed properly, either the Surrogate or Superior courts can help the executor(s) in following the proper procedure to make sure that things go smoothly.

• Inventory

Taking an inventory of the estate is the next step in the process. Basically this just means assessing the value of all the stuff in the entire estate. While the executor should be able to handle the basic things, high-value assets (homes, vehicles, land or any valuable collections, such as art) should be handled by professional appraisers that have been appointed or certified by the court.

• Pay Claims of the Estate

It is the executor’s responsibility to notify any creditors or those with claims against the estate. Anyone who has a claim should notify the probate court within a certain time period. The executor will also be responsible for accepting or rejecting any claim as it is submitted. If it is accepted, the claim is paid out of the total value of the estate. If a claim is rejected by the executor, creditors may file a lawsuit against the estate. Once any and all claims have been dealt with and inventory is complete, it is then submitted to, reviewed and affirmed by the court.

• Death and Taxes

For the next step, any applicable tax forms must be completed and sent to the IRS after inventory is completed. Among these is the 706 form, which is required by the IRS for estate taxes. This must be completed within 9 months of death, unless an extension is granted. Also required is a final 1040 form, which must be completed for the year of death, as well as 1041 forms for any trusts that have been left behind.

Dependent on the final inventory of the estate and completion of necessary tax forms, taxes are then paid to the IRS. Once received, a letter will be issued stating that any and all taxes have been paid. However, this process can take a while, up to 1-2 years after death. Family members need not worry though, as an experienced attorney can handle this step, minimizing both expense and time, as well as helping to avoid serious consequences caused by any potential errors.

Final Accounting

Once everything with taxes and claims is settled, a final accounting is done to summarize affairs for the court. A final accounting includes the initial inventory, any and all earnings, sales, and bills and taxes paid. Payments received by heirs are itemized before payout, which happens once final accounting has been approved by the court. If any disputes arise, beneficiaries are able to challenge the executor before the court.

The Last Round Up

Once everything has been approved and signed off on, final accounting is submitted to the court for approval. They will then issue an order that stating that everything is good in terms of distributing things amongst heirs. At this time, heirs are paid according to the wishes outlined in the will, but if someone has died intestate, heirs are then paid according to those laws.

• Distribution

Distribution is the final step in probate. This is when anything left to any and all heirs is given out. This can include anything from money to property, but all beneficiaries must sign a release and refunding bond before that can happen.

This concludes our quick look at the probate process. While it can be difficult to wrap your head around all the rules and regulations, we do hope that this has helped you to get a little better grasp on the whole thing!

If you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. Let us help ease your stress and give you a plan.

 

 

We discussed the complexities of the probate process briefly in a previous article, now let’s spend some time and look at why, perhaps, you might want to avoid the probate process altogether. We may not know exactly why we should avoid the probate process, but there are, in fact, a couple of good reasons, so let’s take a look at them quickly now.

• It can tie up property for months, potentially even up to a year!

In our society of give-it-to-me-now instant gratification, we don’t like to wait. Heck, we don’t even like waiting for our phone to boot up when we turn it on. Why in the world would we want to drag our heels on something that was promised to us in a will perhaps over a year ago? We wouldn’t. Simple as that. And when there are many more options available instead of probate, the decision to skip can not only make things go faster, but it can also make things much easier to deal with in the long-term.

The second reason is—

• It’s expensive!

The truth of the matter is that the economy is getting better, but it’s never going to be where it used to in regard to the cost of things. And one thing is for sure, probate is expensive. In some states, fees can even take up 5% of an estate’s value. Sure, 5% doesn’t seem like a lot, but when it’s added into all those other expenses that come the aftermath of losing a loved one, it may be simpler (and cheaper) to opt out of probate altogether. Those involved will thank you, and your wallet will too. And let’s be honest, we all want a happy wallet, right?

If you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. Let us help ease your stress and give you a plan.