10
May 2016
Currents
By: Martin Zevin, P.A.
Avoid Probate and Save Thousands in
Legal Fees
My Dad used to say: “May you live as long as you
want and never want as long as you live.” But we all
have to go sometime. When you die, do you want
to leave your heirs with substantial legal fees and a
year in Probate Court? Wouldn't it be comforting to
know that your heirs will inherit your assets quickly
and with little expense?
To avoid probate, I always suggest to clients that
every bank account, brokerage account, annuity, life
insurance, etc. have one or more beneficiaries as
“payable on death” (often abbreviated p.o.d.). This
is also called “in trust for” (i.t.f.) or “transfer on
death” (t.o.d.). However, there are some banks
which will allow the “payable on death” for savings
accounts and CD's but not for checking accounts. If
that is the case with your bank, it will be very important that you have at least one other person as a
joint owner of that checking account. Ideally, this
should be a family member whom you trust, who
may also be designated by you in a Durable Power
of Attorney. The Durable Power of Attorney allows
that person to handle your legal and financial affairs,
particularly if you become incapacitated; however,
the Durable Power of Attorney ends upon your
death. Therefore, if no one else is on the checking
account, then that account becomes an asset which
must be probated.
Even if you take the above steps, it is still very
important to have the proper legal documents to
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