Probate - How to Avoid it and the Role of a Revocable Living Trust

Article submitted by Gregory G. Glenn, Esquire. He is a member of the National Academy of Elder Law

Attorneys and often appears on TV and radio. His law practice is dedicated to helping those over 65 as well as families dealing with Alzheimer's and other disabilities with legal issues. Offices in Hollywood, Florida and Boca Raton, Florida 561-347-1071.

Since the early 80's with the advent of Revocable Living Trusts, every person has been positioning their estate's to try to avoid the Probate courts. There are other ways to keep assets out of the probate court system. An attorney should be consulted when utilizing any of the following suggestions.

Living Trust - When to have one

Revocable Living trusts are most beneficial when the person has 1) real estate in multiple states, 2) family member's inheriting who might otherwise not spend the funds wisely, or 3) has concerns about setting aside funds for his /her own care if he/she becomes incapacitated. Note, if a Homestead is in the name of a Living Trust, it adversely affects Medicaid eligibility for nursing home benefits.

Avoid probate - How to

Avoiding Probate can be accomplished by 1) titling assets in joint tenancy with rights of survivorship, 2) placing a Paid on Death designation on an account, 3) adding a designated family member using the term "OR between the names on an account, and/or 3) designating beneficiaries on all brokerage accounts, CD's, Bonds, IRA's, Life Insurance policies. Note when one is placing another's name on an account the IRS considers it a "Gift" for Income tax purposes and reporting to the IRS may be required. Check with a CPA.

A New Real Estate Deed - Popular for many Senior's

Thee is a new type of deed called a "Ladybird Deed" or Enhanced Life Estate Deed. With it, the person retains full control over the house so long as they are alive, and upon death the named remaindermen own the home. With this deed there is no gift tax issue as in a regular life estate deed. Even better, the ladybird deed can be used and still maintain eligibility for Medicaid nursing home benefits and avoids probate.

Clearing the title on a Home after the death of a spouse

To clear the name of a deceased spouse off of the house's title the following documents in the County property records 1) the deceased spouse's death certificate, 2) an affidavit of no-tax (if no estate tax is due), and 3) a continuous marriage affidavit.

For more information visit the website www.Bocaelderlaw.com.