An Effective Strategy to Avoid Probate
Many individuals seek ways to bypass probate after witnessing how long, costly, and contentious the process can become for loved ones. Common probate‑avoidance tools include joint tenancy warranty deeds, life estates, transfer‑on‑death deeds, and living revocable trusts. Another powerful method is the outright gifting of assets during one’s lifetime.
Gifting as a Probate‑Avoidance Tool
By transferring property to another person via gift, the asset is removed from the probate estate. Federal law allows annual gifts up to a specified exclusion amount per recipient without triggering gift‑tax liability—check with a CPA for current limits. Once a gift is made, ownership and control pass entirely to the recipient, so it’s crucial to gift only what you are comfortable relinquishing.
Key Considerations
- Control: After the gift, you lose all rights to dispose of or use the property.
- Tax Limits: Gifts within the annual exclusion avoid gift‑tax filings; larger transfers may require reporting.
- Estate Goals: Gifting works best for assets you no longer need and where probate avoidance outweighs the benefit of retaining control.
For more information on gifting and other probate‑avoidance strategies, call an Oklahoma estate planning attorney at (918) 876‑4500.