Contractual Arrangements. The contractual arrangements, which can avoid probate, include life insurance and corporate benefit plans, even if the average person has a tendency to forget these things as a vehicle to avoid probate. When you pay the premiums, for example, transferring money from a life insurance company and the company undertakes to pay the death proceeds designated beneficiary. At the same time, it is assumed that the ownership of the policy, you can obtain the monetary value of your life and the death proceeds are paid directly to your beneficiary, without due process of succession. In reality it is a legal agreement between you and the insurance company, so that no court or other third parties must be involved in authorizing the payment of the proceeds designated person. In general, there are four reasons why the property is designated as beneficiary of life insurance: to make the proceeds available to competitors in the will and the creditors the property, succession and increasing the costs of attorneys’ fees, to ensure that we will be a significant delay the first beneficiaries receive the money, and that the returns are a real estate or inheritance taxes. In other words, there are good reasons why you should designate a property as beneficiaries of life insurance policies.
Joint Ownership. Ownership of the property is probably the most popular way to avoid inheritance and property transfer at death, if its popularity can not be fully justified.
The basic operating principle behind co-ownership between the two owners is that the death of one, the survivor automatically owns all joint assets. In a sense, be considered as a kind of inheritance. Condominium use to avoid probate can be very risky. Not only invite litigation when there is reason to doubt the intention of the deceased, but may also cause additional fees and administrative costs – the same things we hoped would prevent the condominium.
Living Trust. In short, a living trust is a trust created during your life that usually provides for the transfer of resources held in trust at the time of your death. For example, you can design your stay to pay all the income trust for you during your life and your death, the remains of the trust should be transferred to the spouse. Because this is a transfer of the entire life of the property to the trust account, and trust that provides for what is destined to make the ownership of your death, there would be no need to probate court to participate in the transfer of these funds to continue.