How to Avoid Probate and FAQs

In a lot of cases, probate can easily be avoided, yet lots of people don’t realize and fail to avoid it. Below are frequently asked questions in regards to avoiding probate. Need more information on what probate is? [Insert link to what is probate]

Can you avoid probate with probate exemptions?

Here in Utah, you can avoid probate if you have a small estate worth, at the time of this writing, less than $100,000; after subtracting things such as encumbrances and liens, and motor vehicles that are registered in Utah. In order to avoid probate with a small estate, heirs must sign an affidavit that meets the requirements of Utah Code section 75-3-1201.

What can you set up while still alive to avoid probate?

There are a few things you can do in order to set up to avoid probate after one’s death. Below are the two options in Utah

Trusts

The most common I see is a Living trust. In the state of Utah, living trusts can help you avoid probate for just about any asset you own, ranging from real estate property to vehicles to bank accounts. The premise of a living trust is similar to a will. You will name someone to become trustee after you pass away. At the time of your death, the successor trustee will be able to transfer the assets to the respective trust beneficiaries without going to probate court. 

There are also Irrevocable trust, Revocable trust, Utah Domestic Asset Protection Trust. Each option has benefits and risk. You really need to speed to a attorney who specializes in trusts and asset protection. 

Payable-On-Death Designations for Bank Accounts

Another possible way to avoid probate court is by adding a “payable-on-death”, also known as a POD, designation to your bank accounts. These include checking and saving accounts, and certificates of deposits. The beneficiary does not have any rights to the money until after your death, meaning you can spend all of it or do what you want with it. 

Helpful information on talking to your family about your decisions. How to talk to your adult kids about inheritance and your estate planning.

We highly recommend seeking the legal counsel of an attorney who specializes in estate planning, trusts, and asset protection. None of the information on this page or site is to give legal counsel or advise. All content on this website is intended for general information only, and should not be construed as legal advice, tax advice, or financial advice. Before taking any action based on this website you should consider your personal situation and seek professional advice.