How to Avoid Probate and Taxes

At Zeigler and Associates, we advise our clients that the best way to avoid Probate is to adopt and fund a revocable living trust. A trust is also the best method to reduce and possibly eliminate federal estate taxes. We save our clients’ money while providing peace of mind to our clients and their families.

Contrary to what many think, a will does not avoid Probate Court. A will is a set of instructions to a Probate Judge stating how you want your assets to be distributed following your death. Dying without a will means that your assets will have to be processed through Probate Court in order to be distributed to your heirs. All assets of the decedent titled in the decedent’s name alone will then be inventoried, taxed and distributed using the Probate process.

The Probate Court System is a very public proceeding. All personal and financial information of the descendant is fully disclosed for anyone to obtain. So, having a will alone is simply not private.

To avoid Probate, many clients try to use joint ownership with the right of survivorship. However, joint ownership can result in unintended income tax, capital gains tax and federal estate tax consequences, and even the unexpected loss of the entire asset. At Zeigler and Associates, our planning strategies can reduce expensive Probate issues and avoid tax consequences.

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