• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Estate Planning » Why Do People Avoid Probate?

Why Do People Avoid Probate?

October 18, 2021 by John Potter

probateYou will invariably see references to “probate avoidance” if you poke around on the internet looking for information about estate planning. Before you make any decisions, you should have an understanding of the matter, and we will provide an explanation here.

Court Supervision

When a will is used to transfer assets, the person that creates the document (the testator) names an executor. This is the person who will complete the hands-on estate administration tasks after the testator’s death.

You may remember a scene in a movie or television show where an executor reads the will to people who expect to be named in it. The implication is that the executor will be able to distribute the assets in short order, but this is not the case.

A will is admitted to probate, and the court provides supervision while the estate is being administered. This process serves a purpose because creditors are notified about the passing of the decedent, and they are given time to come forward seeking payment.

Another function of the probate court is the “proving” of the will. The validity of the document is considered by the court, and if anyone wants to challenge the terms, they can make a case while the estate is being probated.

This court will also preside when a person dies intestate, which happens when someone passes away without any estate planning documents. The court would appoint a personal representative to act as the administrator, and ultimately, the assets would be distributed under the intestate succession laws.

Probate Avoidance

Now that you know what probate is in a general sense, we can explain why some people try to avoid it. The process is not inherently bad, but it will take months to run its course at minimum, and the inheritance is tied up while the estate is in probate.

Expenses can accumulate, and the general public can access the probate records so your final affairs are not conducted in private when your estate goes through probate.

Probate-Free Transfers

Even if you are not intentionally attempting to avoid probate, there are some types of transfers that are simply not subject to the process. Joint tenancy is one of these situations.

You can add a joint tenant to property, and this person would own half of the property. If you predecease your joint tenant, he or she would inherit your interest in the property, and the probate court would not be involved.

A payable on death account (POD account) is a type of account that can be opened at a bank (or a transfer on death (TOD) account at a brokerage), and they are sometimes referred to as Totten trusts. You name a beneficiary when you start the account, and the beneficiary would inherit assets that are left in the account after your death.

This transfer would not go through probate. In some states, you can name a beneficiary when you register your motor vehicle, but this is not offered in Kentucky and North Carolina.

Your individual retirement account will be transferred to a beneficiary after your death if you have made a beneficiary designation, and probate would not be an issue.

Revocable Living Trust

Another probate avoidance tool is a living trust.  A revocable living trust is a versatile estate planning tool that is the right choice for many people, and you do not have to be wealthy to take advantage of the benefits. You don’t have to be concerned about losing access to the assets because you would act as the trustee during your life.

After your death, the successor trustee you designate would follow the instructions that you leave with regard to asset distributions. Your wishes would be carried out, and the administration of a living trust is not subject to probate.

This is one of the advantages that living trusts provide, but there are others that we will examine at another time.

Schedule a Consultation!

As you can see, you have choices to make when you are planning your estate, and there is no one-size-fits-all approach. When you choose our firm, we will work with you to develop a personalized plan that is perfect for you and your family.

You can set up a consultation at our Charlotte, NC or Huntersville, NC estate planning office if you call us at 704-944-3245. The number for our Ashland, Kentucky location is 606-324-5516, and the number for our Florence, KY location is 859-372-6655.  You can also use our contact form if you would prefer to send us a message.

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Estate Planning Tagged With: Estate Administration, living trust, Probate, Probate Avoidance

Other Articles You May Find Useful

How to Gift to Your Grandchildren in Your Estate Plan
pour-over will
What Happens If I Leave Property Out of My Living Trust?
estate tax
2022 Estate Tax Exclusion Has Been Set
QTIP trust
How Can You Protect Your Children’s Inheritances If You Get Remarried?
probate
Are There Any Probate Shortcuts in North Carolina?
life estate
What Is the Purpose of a Life Estate?

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT