Avoid probate so your loved ones can properly grieve.

Byline: Bridgetower Media Newswires

People often believe that having a will alone avoids probate after death. This is simply not true. Avoiding probate requires you to take active steps so that you don't have to go through the time-consuming process.

What is Probate?

Probate is the court-supervised process of transferring assets from a deceased person's name to the beneficiaries. Avoiding probate is less time consuming it may take up to one year to complete, it requires the help of an attorney, and there is a court filing fee based on the value of the assets.

What Triggers a Probate Situation?

Probate is required in Wisconsin if an individual's solely owned assets exceed $50,000.00 in value. If you own a home, this automatically creates a probate situation. If you own property jointly with your spouse, there is no probate. The property passes to the surviving spouse. Don't forget to remove your deceased spouse's name from the title.

Avoiding Probate, Part I

You can avoid probate by:

Adding beneficiary designations to all of your assets, including life insurance, annuity, and retirement assets.

Adding "pay on death" (POD) designations to your cash accounts at your financial institution.

Contacting your financial advisor where your mutual funds are held and add "transfer on death" (TOD) designations to those accounts. After death, financial institutions freeze accounts, so you will need to present a death certificate and identification to receive your inheritance.

Disadvantages to Using Payment on Death

You will need to update your beneficiary designations as your circumstance changes, and you may forget to do so. Also, if there are expenses to be paid after death, your account is frozen and no one, including your children, will have the legal authority to pay your bills. However, your kids may feel a moral obligation to do so. Do you want to leave this up to your children or other beneficiaries?

For real estate, a Transfer...