By Steven Muller
People that have worked their entire lives earning a living and creating an estate don't want to see their life's work go to the government in the form of taxes. Probate is is the legal process of administering the estate of a deceased person by resolving all claims and distributing the deceased person's property under the valid will. This involves going to court and can be a lengthy process. If your family is in the need for immediate funds to survive after your death, then this is a very important issue to resolve and avoid. There are some ways to accomplish this and one being payable-on-death bank accounts.
Payable-on-death bank accounts offer one of the easiest ways to keep money out of probate. All you need to do is fill out a simple form, provided by the bank, naming the person you want to inherit the money in the account at your death. As long as you are alive, the person you named to inherit the money in a payable-on-death (P.O.D.) account has no rights to it. If you need the money you can spend the money, name a different beneficiary, or close the account. At your death, the beneficiary just goes to the bank, shows proof of the death and of his or her identity, and collects whatever funds are in the account. The probate court is never involved. Setting up an account like this one is a very easy way to avoid the time and hassle of probate courts.
Sources:
http://www.nolo.com/article.cfm/objectId/EC0C33D5-1A74-4312-9C7BC3B408297398/309/227/ART/
http://www.diyassetprotection.com/avoid-probate.html
http://www.articlealley.com/article_130448_18.html
Payable-on-death bank accounts offer one of the easiest ways to keep money out of probate. All you need to do is fill out a simple form, provided by the bank, naming the person you want to inherit the money in the account at your death. As long as you are alive, the person you named to inherit the money in a payable-on-death (P.O.D.) account has no rights to it. If you need the money you can spend the money, name a different beneficiary, or close the account. At your death, the beneficiary just goes to the bank, shows proof of the death and of his or her identity, and collects whatever funds are in the account. The probate court is never involved. Setting up an account like this one is a very easy way to avoid the time and hassle of probate courts.
Sources:
http://www.nolo.com/article.cfm/objectId/EC0C33D5-1A74-4312-9C7BC3B408297398/309/227/ART/
http://www.diyassetprotection.com/avoid-probate.html
http://www.articlealley.com/article_130448_18.html
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