The probate process serves the vital purpose of ensuring that an individual's estate is properly distributed to his or her creditors, heirs and beneficiaries. But, the probate process can be slow and can often tie up estate property for several months. Probate may also be costly, with certain fees being paid out of the estate and reducing the amount left for distribution. For these reasons, many people may wish to arrange their affairs so that their loved ones do not have to go through the probate process, and can receive assets from the estate more efficiently. 

There are several methods that can be used to avoid the probate process, and to distribute assets immediately at the time of the decedent's death. Among these methods are:

• Joint Ownership with Rights of Survivorship;
• Beneficiary Designation; and
• Revocable Living Trusts.

Joint Ownership with Rights of Survivorship

Property owned in joint tenancy with rights of survivorship automatically passes, without probate, to the surviving owner or owners when one owner dies.  Joint tenancy is simply a type of property ownership involving more than one owner, leaving each owner with the right to a larger share of the property should any individual owner die.  This model often works well when couples (married or not) acquire real estate, vehicles, bank accounts, securities, or other valuable property together.  To take joint title with someone usually only requires that joint ownership is stated on the paper that shows ownership (i.e., car title, a real estate deed, or other document).  But since each joint tenant has control over the property, you should be careful when committing to this type of ownership.

Beneficiary Designations

Beneficiary designations can be made under several different types of accounts.  Funds from life insurance policies, retirement funds, and IRAs pass directly to the beneficiary because they are considered contractual obligations to pay out a death benefit.  These designations prevent the accounts from needing probate consideration.