What are the basic methods used by financial professionals to help their clients avoid probate?
A. To reduce the risk of probate, the most widely used technique is the revocable living trust. Any assets held in this trust are not in any way subject to the probate process. In other words, they are protected from probate. Although there are limitations to any trust arrangement, if the client’s objective is to avoid the cost, delays, and publicity inherent in the probate process, a revocable living trust is often the technique financial professionals recommend to their clients. Another interesting way to avoid probate is through joint tenancy, in which property is titled jointly with rights of survivorship between spouses. Jointly titled property can be a viable will substitute. But, once again, the client’s objectives and goals have to be considered because the disadvantages of owning property jointly, including its adverse estate tax consequences on the second death, generally far outweigh its advantage of avoiding the probate process. Other probate-avoidance techniques used in so
