Yes, if your goal is to keep some of your assets out of probate when you pass away, there are steps you can take to plan in advance. Your estate plan can be set up to transfer assets to specific beneficiaries.
There can certainly be some advantages to removing assets from probate. It helps beneficiaries get access to those funds more quickly, for example. It can also help to avoid complications with will challenges or contests. Below are two examples of how you can address this.
1. Setting up payable-on-death accounts
A payable-on-death account, also known as a POD account or a Totten trust, is one tactic you may want to consider. This is similar to using a bank account, but you set up a beneficiary designation in advance.
That does not mean that the chosen beneficiary has any ability to access your funds while you are still alive. But once you pass away and they provide proof to the financial institution, they then own the account. It does not have to go through probate because it immediately leaves your estate and becomes the property of the beneficiary.
2. Using life insurance beneficiary designations
Another option is to purchase a life insurance policy. Like a POD account, this comes with a beneficiary designation. Generally speaking, the beneficiary that you select directly receives the payout from the life insurance provider. This keeps those funds out of your estate entirely, so they do not have to go through probate at all.
Setting up your estate plan
These are just two options you can use when creating your estate plan if avoiding probate is important to you. It can help to work with an experienced attorney to ensure that everything is set up correctly.