One of the important tactics utilized in many cases involves bypassing probate court. The more property that people can keep out of probate proceedings, the more their beneficiaries may ultimately receive. Assets that become an individual’s estate must typically pass through probate court. Their value can lead to estate tax liability. Those assets could also be vulnerable to creditor claims.

Keeping property out of probate court is a smart move for those hoping to preserve as much of their property for loved ones as possible. What are some ways to keep assets out of probate court?

1. Use assets to fund a trust

Typically, only the property that belongs directly to a testator becomes part of their estate. Resources previously transferred to a trust to fund the trust do not belong to that individual anymore.

The trust has ownership and control over those resources. Moving high-value assets including business holdings and real property to trust can be a way to keep those resources out of probate court and significantly reduce the overall value of an estate.

2. Add co-owners to major assets

Another way to prevent assets from becoming part of an estate is to share ownership of those assets with others. Taking on a joint tenant with rights of survivorship can allow that other person to assume ownership of a shared home after the other owner dies. Adding a spouse or child to the ownership paperwork of other valuable assets typically prevents those assets from becoming part of an estate and requiring the oversight of the probate court.

3. Arrange for automatic transfers

Many people do not want to add co-owners to their financial accounts, as those other parties could waste resources and leave the account holder vulnerable. It is possible to arrange for financial resources to bypass probate court without giving another person access to those accounts immediately.

Transfer on death paperwork filed with financial institutions can keep monetary resources out of probate court. The intended beneficiary named in the paperwork can present the financial institution with identification and a copy of the death certificate of the account holder to take possession of the account.

Reviewing personal assets and estate planning goals can help individuals find ways to preserve their wealth by keeping property out of probate court. When testators establish thorough plans addressing their most valuable assets, they may have better peace of mind knowing that their loved ones will be provided for after they are gone. Contact us online or call today for a free consultation with Pennington Law, PLLC.

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Sometimes, however, the decedent owns property in more than one state – and ancillary probate becomes necessary.

What is ancillary probate?

Essentially, ancillary probate is an additional probate process that occurs when the deceased had real estate or other tangible property located in a state other than their primary residence. Probate laws vary by state – and so does the process of transferring real property from one person to another – so a probate proceeding in one state doesn’t apply to property in other states.

Ancillary probate often comes up in situations where people have “summer” and “winter” homes or vacation property that they use a few times a year. However, the need for ancillary probate can also be triggered due to the sole ownership of other tangible property like boats, recreational vehicles and other valuable assets.

Can ancillary probate be avoided?

With some strategic planning, it is possible to avoid ancillary probate altogether. Common strategies include:

• Transferring property ownership to a living trust: This is one of the most popular methods of avoiding probate. The living trust becomes irrevocable on your death, and the property can be passed directly to your chosen beneficiaries without going through probate.
•  Transfer-on-death deeds: Also known as a “beneficiary deed,” this is a legal document that transfers ownership of real estate to your chosen beneficiary at the moment of your death, bypassing probate.
•  Property with the right of survivorship: If you co-own property with someone else as joint tenants with rights of survivorship, the property will automatically transfer to the surviving owner upon your death. This is a practical solution for some married couples, but not right for everybody.

If you’re concerned about the possibility of ancillary probate with your estate, a professional consultation may be in order. There are multiple ways to avoid probate entirely, and experienced legal guidance can help you find the right method for your needs. Contact us online or call today for a free consultation with Pennington Law, PLLC.

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Some things are beyond your control. For example, if a court has to make a decision on something, it will take the time it needs. Further, there are certain periods you need to respect, such as the amount of time given for creditors to present their claims once you post notice of the person’s death.

There is, however, a lot you can do to keep things moving forward as efficiently as possible. Let’s look at a few.

Get organized

Before starting the administration of an estate, you need to draw up a plan. This can help you do things in the appropriate order and reduce the chance you overlook something. A good filing system can also go a long way in keeping the process on track.

Be patient, but not too patient

Know that you will have to wait for some things. People are busy, but politely reminding them you need a response from them can help if the issue has slipped their mind or dropped to the bottom of their to-do list.

Seek help where needed

It may make sense to get help to speed things up. For example, you could engage family members to help you list the deceased’s assets or find the contacts you need. Legal guidance can also help, allowing you to tackle tasks you have not dealt with before with confidence and knowledge. Contact us online or call today for a free consultation with Pennington Law, PLLC.

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The executor’s role is to settle an estate once the testator passes away. The executor will take several steps to fulfill the testator’s last wishes. This is all during the probate process, which can last several months to over a year depending on the complexity and size of an estate and any issues that might come up along the way.

There are several steps you must complete as an executor to fulfill your role. Here is what you should know:

Validating the will

Typically, the first step as executor is validating the testator’s will. This can be done by submitting the will to probate court. After a review of the will, the probate process begins, which allows you to fulfill the instructions left in the will. This step will also decide whether there is a need for a probate process, which could be avoided if assets are transferred to trusts.

Gathering death certificates

One of your duties will be to collect about a dozen death certificates. These certificates are used to notify interested parties, such as banks, insurance companies, creditors and debt collectors. Funeral homes typically provide death certificates.

Paying taxes and debts

One of the steps you may need to fulfill is paying any remaining debts or mortgages on behalf of the estate. You may also need to file taxes.

Distributing assets

Typically, the final step as an executor is locating assets and contacting beneficiaries. You will then distribute assets to beneficiaries according to the will.

As an executor, you have a fiduciary duty to fulfill. Failing your duty could create legal complications. You can seek legal help as you begin your role as executor. Contact us online or call today for a free consultation with Pennington Law, PLLC.

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What is Probate?

Probate is the court-supervised process of distributing a person’s assets once they die. There are two types of probate: 

• Informal probate – For estates with a valid will and no contested disputes
• Formal probate – A court-involved process where a judge makes decisions on will contests, beneficiary designations, or other disagreements 

There are some common misconceptions about probate, including:

• All assets must go through probate – Some assets are not subject to probate, including living trusts, payable on death (POD) accounts, jointly owned property, and retirement accounts and insurance policies with designated beneficiaries.
• Arizona keeps the assets when there is no will – If your loved one did not have a will, the Buckeye, Arizona probate court will distribute the estate according to the state’s intestate succession laws. 

When is Probate Necessary?

Not every estate in Arizona must go through probate. In some situations, Arizona law permits estates valued at less than $75,000 to go through a simplified “small estate” process. Probate is necessary if you die without a will or have a large estate with assets over $75,000 or real estate over $100,000. 

Assets typically transferred through probate include real estate, vehicles, household items, personal property and valuables, and financial assets, including cash and bank accounts. 

The Probate Process in Buckeye

The Buckeye, Arizona probate process involves several steps:

• Initiating probate – The estate’s personal representative (executor) must file documents with the probate court to initiate probate proceedings. If there is no will or your loved one did not name a qualifying personal representative, the court will appoint someone. 

• Inventorying and appraising assets – Once appointed, the personal representative must oversee the probate process, including inventorying and appraising the estate. 

• Notifying creditors and heirs – The personal representative must notify your loved one’s heirs and creditors of their death and allow them to make claims on the estate. 

• Settling debts and taxes – Your loved one’s assets will be used to settle estate taxes and pay any owed debts. 

• Distributing remaining assets to beneficiaries – Once all debts and taxes are paid, the personal representative will oversee the distribution of the estate’s assets to beneficiaries. 
• Closing the estate – After completing the required steps, the executor must file with the probate court to close the estate officially.

Contact Our Buckeye, Arizona Probate Attorneys Today

Estate administration can be overwhelming, especially if you are grieving the loss of a loved one. An experienced Buckeye, Arizona probate attorney with Pennington Law, PLLC, can assist you in resolving estate disputes and making the process as painless as possible. Contact us online or call today for a free consultation. 

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The following are several benefits you can gain by working with an experienced legal team to avoid probate.

Keeps estate details private

The probate process is a public affair, meaning that details about your assets, debts and beneficiaries become part of the court record and accessible to anyone. By avoiding probate, you can keep your estate details private, shielding your financial affairs from public scrutiny. This confidentiality can be particularly important if you value your privacy or wish to protect sensitive information from potential creditors or nosy individuals.

Faster distribution of assets

By minimizing time spent in probate proceedings, avoiding probate allows for a quicker distribution of assets to your chosen beneficiaries. Probate can often be a lengthy process sometimes taking months or even years to resolve. However, with careful estate planning and avoidance of probate, your loved ones can receive their inheritances more promptly providing them with timely access to financial support or resources they may need. This expedited distribution can be especially beneficial in situations where beneficiaries are dependent on the estate for financial stability or assistance with ongoing expenses.

Reduces conflict

Family members can sometimes disagree or dispute the terms of a will or the distribution of assets during the probate process leading to prolonged legal battles and strained relationships. By avoiding probate and implementing clear and legally binding estate planning documents such as trusts or beneficiary designations, you can reduce the likelihood of such conflicts arising among your heirs.

Seeking legal guidance is important to help you better understand the options available for avoiding probate in Arizona and to better ensure that your estate plan is properly structured to meet your specific needs and goals.  Call or contact us for your free initial consultation.

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Often, estate plans include a small amount of compensation for the services rendered by a personal representative or executor. However, the trade-off is the potential for personal financial responsibility in certain scenarios. Mistakes during the probate process could lead to financial claims against the representative. The following mistakes are among the most likely to lead to financial liability.

1. Failing to file necessary tax returns

Tax obligations are a top priority during estate administration. Both the decedent and the estate itself could have tax liabilities. A personal representative usually needs to file an income tax return on behalf of the deceased individual. They may also need to file an estate income tax return if they sell estate resources. Personal representatives must ensure that they filed the necessary tax paperwork and that they retain enough estate resources to pay tax obligations in full.

2. Not reaching out to creditors

Settling someone’s financial obligations involves more than just tax payments. It also means settling all financial liabilities. Student loans, credit card debts and medical bills are among the financial obligations that can require payment using estate resources. Personal representatives typically need to go through someone’s financial records and monitor their incoming mail to identify creditors. If a representative fails to provide appropriate written notice to known creditors or does not properly publish notice of estate administration for unknown creditors, the parties unaware of the probate proceedings could hold them accountable for the failure to pay those debts.

3. Distributing assets from the estate too soon

Creditors have months to bring claims against estate resources. The beneficiaries or heirs of the decedents may begin haranguing a personal representative long before that process ends. They may demand access to estate resources, which could lead to the personal representative distributing assets prematurely. Particularly when there is reason to believe the estate does not have enough resources to pay all obligations in full, distributing assets to beneficiaries might lead to personal liability for the representative. Creditors could hold them accountable for the value of any assets distributed to beneficiaries instead of used to repay debts owed by the decedent. Additionally, if the personal representative pays debts in the wrong order and fails to handle higher-priority debts, creditors might take legal action against them for that oversight.

Securing proper support during estate administration can help personal representatives avoid potentially expensive mistakes. People who understand the risks involved in estate administration may have an easier time protecting themselves legally and financially. Call us or contact us today for your free initial consultation.

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For your will to be enforced, however, it must go through probate. This is the process of identifying your assets and beneficiaries, paying applicable taxes and debts and distributing what is left per the provisions of the will. However, probate can be a very lengthy and expensive process. Here are three things you can do to reduce the cost of probating your estate:

Set up a trust

A trust, just like a will, allows you to set forth inheritance for your loved ones. A trust, however, allows you to manage and distribute your assets while you’re still alive. Therefore, assets that are held in the trust are not considered part of your estate and, thus, do not go through probate. Besides probate costs, setting up an irrevocable trust can also result in certain tax benefits.

Set up a joint tenancy

Any asset that you co-own with someone else under the joint ownership with the right of survivorship arrangement automatically passes down to the other co-owner upon your death. As such, you don’t have to include such assets in your will. However, this arrangement can present complications, especially if you do not have a stable relationship with the co-owner.

Give away gifts

Gifting away assets is another excellent way of reducing the value of your estate and, thus, probate fees. However, you want to be sure that this approach fits within your intentions and that it doesn’t jeopardize your ability to provide for yourself and your dependents.

The probate process can be quite overwhelming, especially when your loved ones are still grieving. Find out how sound legal counsel can help you minimize the costs associated with probating your estate. Call or contact us for your free initial consultation.

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Comprehensive Estate Planning Solutions

Our primary goal at Pennington Law is to provide you with a range of options that not only secure your wealth but also ensure the smooth transfer of assets at the appropriate time, aligning with your intentions. With extensive experience in estate planning, our lawyers offer trusted counsel tailored to clients from various backgrounds, including active-duty military members, small business owners, wealthy executives, and retirees. We are dedicated to ensuring that your future is secure, regardless of your unique circumstances.

Sensitive Approach to End-of-Life Issues

Pennington Law understands that addressing end-of-life issues can be challenging. Our approach is characterized by sensitivity and openness, empowering you to make the best decisions for yourself and your loved ones. As your trusted estate planning partner, we guide you through the process with a focus on compassion and understanding.

Wealth Management and Growth Expertise

In addition to our estate planning services, Pennington Law boasts a robust wealth management and growth practice. Our financial professionals are committed to plotting the most ideal ways to build and secure your wealth for retirement. From asset protection and long-term care planning to cash-value life insurance, wealth-generating trusts, and fixed index annuities, we tailor strategies to meet your specific financial goals.

Serving the Greater Arizona Area

Pennington Law proudly serves clients in Surprise, Sun City West, Peoria, Goodyear, Buckeye, and the surrounding areas. As your Arizona estate planning attorney, we are here to assist you in navigating the intricacies of probate laws and ensuring a seamless process for the administration of your estate.

If you’re seeking a reliable partner for estate planning and probate administration, contact Pennington Law today to learn more about how our comprehensive services can benefit you and your family. Trust us to safeguard your legacy and guide you through the complexities of Arizona probate laws.
ing your legacy and guiding you through the intricacies of estate planning. Our experienced Arizona estate planning lawyers are committed to providing tailored solutions that secure your wealth and ensure a seamless transfer of assets according to your intentions. Whether you are an active-duty military member, a small business owner, a wealthy executive, or a retiree, our team at Pennington Law is here to make sure your future is secure.

As you navigate the sensitive terrain of end-of-life issues and seek to build and secure your wealth for retirement, our comprehensive estate planning and wealth management services stand ready to assist you. From asset protection to long-term care planning and wealth-generating trusts, we customize strategies to meet your unique financial goals.

Pennington Law proudly serves clients in Surprise, Sun City West, Peoria, Goodyear, Buckeye, and the surrounding areas. Your journey through Arizona probate laws doesn’t have to be daunting—with Pennington Law, you have a reliable partner by your side.

Take the first step towards securing your legacy and ensuring a smooth probate process. Contact Pennington Law today to schedule a consultation and discover how our expertise can benefit you and your family. Your future deserves the attention of seasoned professionals who are dedicated to protecting you and your assets.

Trust Pennington Law: Your legacy, our commitment.

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Reading the Will

When you act as executor, it is vital that you thoroughly understand your parent’s will and its directives as part of the estate administration process. If the language includes complex legal terms, ambiguity, or unclear provisions, you may need professional assistance. The main components to focus on include identifying the beneficiaries, your parent’s assets and debts, and any specific instructions they had in their final wishes.

Timelines and Legal Responsibilities

The executor of an estate has specific legal obligations to fulfill. The list of duties includes notifying beneficiaries, obtaining death certificates, starting the probate process if needed, and notifying creditors. You must handle these tasks according to legal guidelines and within set timeframes. Failing to do so can prolong the distribution of assets, trigger financial penalties, and create legal complications.

Detailed Communication

Another critical duty of the executor involves communicating in an open, transparent manner with beneficiaries and potential heirs or other interested parties. The administration process can take time, and an executor can avoid disputes and maintain trust by providing updates and disclosing what happens at each stage.

As executor, be aware that disgruntled beneficiaries and other parties can make legal claims if they disagree with your actions. You must protect yourself by documenting all decisions and communications as you work through administering the estate.

Assets and Liabilities

The executor must gather information on their parent’s assets and debts and manage them according to the will’s directives. Duties include closing bank accounts, paying off credit cards, selling real estate, and managing or selling investments. Handling these transactions properly protects the value of your parent’s assets. Transparent communication about how you handle the assets, along with keeping detailed records of all financial transactions, can minimize disputes and protect you in case of legal problems.

Acting as executor for your parent’s estate demands diligence, communication, and an understanding and respect for its legal and financial intricacies. With careful attention, you can successfully navigate this challenging journey with the support and guidance of an experienced Arizona estate planning attorney from Pennington Law, PLLC.

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