When a loved one passes away, settling an estate can be complex, extensive, and emotionally taxing. In California, one common question is, can you settle an estate without probate in California? While probate can be a structured way to handle your estate, it can also be costly and time-consuming. There are options available to settle an estate without probate. A Temecula probate attorney can help.

Understanding Probate

Probate is the process in which a deceased person’s estate is distributed, and their debts are paid, all legally through court supervision. While probate is a vital process that ensures that a person’s estate is distributed in an orderly fashion, it can sometimes be a lengthy and costly process.

In California, there are several alternatives to probate that may be available to individuals depending on the value of their assets and their overall estate planning wishes. Consulting with an estate planning attorney can help navigate the complexities of probate law in California. A lawyer can help you develop the most appropriate strategy for your situation.

How To Settle an Estate

Estate settling is the process of managing and distributing assets and liabilities of a deceased individual. This process typically begins at the death of the deceased. There is a process in place to ensure that their final wishes are carried out and their affairs are properly concluded.

This process begins with identifying the person’s assets and debts. A personal representative must be appointed, either by naming through a will or appointed by the court. This representative will perform a variety of tasks, such as notifying creditors, paying debts and taxes, and distributing assets to beneficiaries. These instructions will either be outlined in a will or will follow state law if there is no will.

Throughout this process, the representative must make sure that each step complies with state laws. This could include filing tax returns or obtaining court approval for final accounting. Estate settling will require legal intricacies and attention to detail, but it ensures that the deceased’s wishes are fulfilled and their assets are distributed properly.

How to Settle an Estate Without Probate in California

In California, there are a few options for settling an estate without probate. These include:

• Small Estate Affidavit: A small estate affidavit is a simplified probate procedure. This is an option if the deceased’s estate is lower than a certain threshold. This threshold varies by state and can change each year, depending on many factors, such as the current cost of living in that state.With a small estate affidavit, the recipients can collect the deceased’s assets without going through full probate proceedings. There are, however, requirements that must be met in order to pursue this option.
• Joint Ownership: With joint ownership, you own community property with another person. In joint ownership, there must be a right of survivorship attached to it, where the property is automatically assigned to the surviving owner in the event of the other owner’s death without the necessity of probate. Some common properties that can have joint ownership are bank accounts, real estate, and investment accounts.
• Living Trust: A living trust is a legal entity that is created to hold ownership of an individual’s assets during their lifetime and release the assets to beneficiaries upon their death outside of probate. The individual retains control of the trust during their lifetime and assigns a trustee to manage it after their death. In addition to avoiding probate, some people opt for trusts because it is more private than going to probate.
• Payable-on-Death Designations: In payable-on-death designations, you set up a beneficiary to receive your assets upon your death with certain accounts. Some examples of these accounts include bank accounts, vehicles, retirement accounts, and life insurance policies. With this option, assets are typically readily available to the beneficiaries upon your death.
• Gifts: Giving away assets in the form of gifts while you’re alive helps to alleviate the amount of assets that need to be worked out after your death. This will also lower the cost of probate if probate becomes necessary. Generally speaking, the higher the value of the estate, the more probate costs.However, there are laws that dictate how much you can give away in gifts per person without having to file a tax return. If you choose this option, be sure to remain up to date on the amount of this law in California for the current year.

FAQs

Q: Do All Estates Have to Go Through Probate in California?

A: In California, all estates do not have to go through probate. There is a monetary threshold that exists for probate. If an estate exceeds this monetary amount, the estate will have to go through probate. If the estate is under this amount, the estate may qualify for simplified probate options or may even avoid probate altogether.

Q: How Do I Bypass Probate in California?

A: There are several ways to bypass probate in California. Some common methods include setting up a living trust, establishing joint ownership of accounts with the right of survivorship, designating beneficiaries for certain assets through payable-on-death designations, giving assets as gifts while living, and using small estate procedures if the estate’s value is below a certain threshold.

Q: What Happens If No Probate Is Filed in California?

A: If no probate is filed in California in instances where it is required, there can be certain legal and financial complications. There could be roadblocks with creditors as they may not be properly notified and debts may go unpaid. Also, the distribution of assets is not guaranteed to go in the way the deceased outlined in their wishes.

Q: What Is the Alternative to Probate in California?

A: The alternative to probate in California includes various methods that are used to either simplify probate or avoid it altogether. Most of these options include setting up alternative plans while alive.

For instance, a person can set up a living trust, assign beneficiaries on accounts with payable-on-death clauses, and use small estate procedures if the estate is below a certain threshold. In addition to time and cost, these options are also beneficial as they provide more privacy than probate.

Contact Sweeney Probate Law Today

If you or a loved one needs assistance with planning for estate settling, the lawyers at Sweeney Probate Law can help. Contact us today for more information.