Getting your affairs to ensure your family is ready when you die may feel morbid, but it is a necessary and responsible process. Trying to keep as much of your estate out of probate may prove invaluable to your family inheriting quicker.
Probate court ensures that your estate goes where you dictate in your will. However, the process may drag on and prevent your loved ones from getting their inheritance timely. Discover some of the tools you may use to pay your family faster after your death.
Life insurance and retirement accounts
Your estate plans may include a life insurance policy that pays out to whomever you designate to receive it. Likewise, when you set up a retirement account, you must select a person or persons to receive the money upon your death. These accounts pay directly to the beneficiaries you choose, and the money does not become folded into your estate.
Trust accounts and funds
If you have property or cash that you wish to leave someone outside of your will, you may want to consider creating a trust. These financial receptacles hold assets to benefit someone else. When you deposit items into a trust, they are no longer part of your estate. Instead, they become the property of the trust until the terms and conditions you impose warrant distribution to a beneficiary. This once again allows your family immediate access to money. You also may impose restrictions such as age minimums for trusts involving children.
A comprehensive estate involves more than a will. By varying your plans, you may help move finances positively for those you love.