Your assets that can pass outside of probate in Georgia are those with named beneficiaries or other legal mechanisms that prevent them from being counted as part of your estate. This includes items such as life insurance policies and assets held in certain trusts.
Georgia probate is a court process that can take from a few months to a year, and the file is public. Assets that avoid probate transfer faster and are not subject to the delays and fees associated with the court process. Setting up these legal tools is part of smart estate planning.
Our probate administration lawyers in Woodstock can help you understand the process and make effective choices. The team at Nelson Elder Care Law has served hundreds of Georgia families. Call today to schedule your free Legacy Planning Meeting.
What Does It Mean for an Asset to Pass Outside Probate?
Probate is the legal process through which a will is validated and the transfer of a person’s property after their death is arranged. When an asset passes outside of the probate process, it is handed directly over to the new owner without the need for the court to get involved.
The transfer occurs because of how the asset is named or because a recipient is listed. The instructions are already included in the account or the deed, so the court has no decision to make.
Our attorneys at Nelson Elder Care Law help Georgia families structure their estates so that more property transfers can occur without needing to go through probate. We can explain what assets must go through probate in Georgia.
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Why Does Avoiding Probate Matter?Probate is a time-consuming process. Even in the case of a simple Georgia estate, probate can remain open for between six months and a year, and sometimes longer. During this time, creditors have a period in which to file their claims.
The process is also open to public inspection. People can look at a probate file to see what a person owned and who inherited it, although some families would prefer to keep this information private.
There are costs involved, such as court fees and usually attorney’s fees connected with the estate. Nelson Elder Care Law assists clients in avoiding probate by structuring their estate in a way that can bypass these delays and expenses.
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How Do Beneficiary Designations Avoid Probate in Georgia?
A beneficiary designation is a written instruction naming who will receive an account upon your death. You usually complete one when you open a retirement account, buy life insurance, or set up certain financial accounts.
Upon your death, the company that holds the account will transfer it directly to the person you have named. The probate court has no role in the transfer because you have already given written instructions in the form of a beneficiary designation.
The important thing is to keep these forms up to date. If a beneficiary form is outdated, money could go to an ex-spouse or someone who has already passed away. Nelson Elder Care Law reviews these designations to make sure your accounts reflect your true wishes.
Do Assets in a Trust Avoid Probate?
Property held in a trust does not go through probate. However, a trust only avoids probate for the property you actually move into, a step called funding. Many people sign a trust but never complete it, leaving those assets in probate.
- A revocable trust lets you retain control during your lifetime and names a successor trustee to distribute your property after your death.
- An irrevocable trust works differently, moving assets out of your ownership in exchange for stronger protection from creditors and long-term care costs.
At Nelson Elder Care Law, we offer the best of both worlds in our proprietary Absolute Protection Trust™. This is an irrevocable trust built to shield a family’s home and savings while retaining flexibility to make changes as your life evolves.
Do Retirement Accounts Pass Outside Probate?
Retirement accounts like IRAs and 401(k)s pass to whoever you named on the beneficiary form. The same is true for life insurance, where the policy pays out directly to your chosen beneficiary. Both of these types of documents have beneficiary designations.
These transfers happen outside the will and outside probate. Even if your will says something different, the beneficiary form on the account controls who gets the money. Naming your estate as the beneficiary is usually a mistake, since that pulls the account right back into probate.
However, you can name a trust as a beneficiary for a retirement or life insurance policy and avoid probate. Talk to our team at Nelson Elder Care Law to develop a strategy that works best for your situation.
Get Help With Probate in Georgia
Assets that pass outside of probate in Georgia include those that have named beneficiaries, such as life insurance policies, as well as assets with built-in protection mechanisms such as certain trusts. When assets skip probate, it simplifies the process for surviving families.
Probate can be complicated, especially if you are serving as administrator. One mistake can mean additional court involvement or even legal exposure. It’s often helpful to work with an elder care lawyer who understands the Georgia courts and probate regulations.
Nelson Elder Care Law has been assisting Georgia families since 2014. We can help you put the right estate plan in place so your family has a more streamlined probate process, or we can help with probate administration. Call today to schedule your free Legacy Planning Meeting.