Owning property jointly will allow the property to directly pass to whomever you own it with, regardless of your marital status. Probate is a legal process that takes place after someone dies. The most common easements are those granted to public utility or telephone companies to run lines on or under your private property and those granted to neighboring property owners to use a common driveway to give access to their home. It becomes especially complicated if you have an ex-spouse whose name is still on credible documents, like the deed to your house. A simple Real Estate Sales Validation Form (included with our software) may also be required. However, you'll want to do everything you can to reduce the burden that will be left on your loved ones should you pass on. How to Avoid Probate with Estate Planning. Frequently Asked Questions - Northern Alabama Law Firm Harris Caddell & Shanks, P.C. For example, if your will makes a number of cash bequests, but your estate consists mostly of real estate, your real estate might have to be appraised and sold to produce cash. It may sound like the probate court process is clear-cut and simple, but we can assure you that there are plenty of reasons to avoid it at all costs. You can read more about TOD deeds at Transfer-on-Death Deeds.
In addition, it's incredibly stressful if there are young children to account for. You would name a person as the beneficiary on the account. People avoid probate for four primary reasons. You can read more about life estate deeds at Life Estate Deeds.
When a deed is signed conveying property to one spouse, the property belongs to that spouse alone. Answer: A Power of Attorney (POA) is a document you have drawn, typically by an attorney, whereby you appoint someone as your 'agent' to make financial decisions on your behalf under certain circumstances. Nonprobate assets typically transfer automatically, bypassing the probate process. The initial trustee has control over the property and, with a revocable trust, the right to amend or terminate the trust. Alabama is not one of them, and neither is Georgia or Florida. An easement allows another person the right to use your land for a specific purpose. It is critical to ensure that each time the property was transferred, the previous purchasers obtained clear title. In Alabama, probate is not mandatory unless the property is transferred directly to another individual. There are two types of deeds used to avoid probate without sacrificing control: - Lady Bird Deed – A lady bird deed (also called an enhanced life estate deed) is a type of life estate deed that is recognized in a handful of states—including Texas, Michigan, and Florida. Examples include life insurance and retirement or other financial accounts with valid beneficiary designations. Free from improper influences by other people. How to Avoid Probate with Estate Planning: Alabama Estate Planning Guide. The Alabama Probate Process.
The process for completing the transfer is described in more detail in the instructions (Next Steps) that are provided by our software when each deed is created. Typically, you would name a beneficiary upon opening these accounts, whether it be with the bank, with the insurance company, or during the onboarding process of your job. Unfortunately, you will not have access to your portion of the estate until the estate is settled, which can take months or even years. If any person transferring the property (grantor) is an individual, the deed must include a statement of that individual's marital status (Alabama Code § 35-4-73). How to avoid probate in alabama at birmingham. A large part of the personal representative's job is recordkeeping to show both the court and the heirs that the estate has been properly administered. However, an estate plan based on a Last Will and Testament usually is headed for probate court. Probate in Alabama is similar to what happens in any other state. At the death of the settlor or at the happening of some sooner event designated in the trust agreement, the successor trustee takes over the trust and immediately has full authority to hold or distribute the trust property according to the terms of the trust without the need for probating a will or petitioning the probate court for authority over property of the deceased. Once you pass on and probate is petitioned for, your estate becomes a matter of public record. I should note that there are many different forms of POAs that are drawn for specialized purposes.
Your first step is to determine whether the decedent has assets that should be included in the Alabama probate estate. If you and a spouse or significant other are thinking about purchasing a first home or even already own you own house, owning jointly allows the property to pass automatically to your significant other without having to go through probate. However, you don't have to be wealthy to create trusts. Our Alabama Inheritance Advance Process. A living trust is a legal document that you can draw up to name specific assets for specific beneficiaries. Avoiding probate can also relieve the fiduciary or heirs of the need to travel to the local probate court for hearings. Because businesses and trusts have no lifespan, the concept of survivorship does not apply to them. Our Deed Generator was built to take these state-specific requirements into account and to produce deeds that are valid for recording in all Alabama counties. While preparing an estate plan, it's crucial to check beneficiary designations also. So if a person did not own Alabama property, there is usually no need for an Alabama probate proceeding. Some states even offer an expedited probate for what they consider "small estates. How to probate will in alabama. " The financial institution rejected the POA saying it lacked specific language that the institution required. Probate can be expensive, often costing thousands of dollars in legal fees and court costs. Gas, oil, minerals and other substances below the land also are considered permanently attached.
Executor's fee (Alabama is a reasonable compensation state). If there is not a will, or if the will fails to name a personal representative, the probate court names someone (called an administrator) to handle the process. What are some rights and of the landlord and tenant? How to avoid probate in alabama state court. There is still an opportunity to dispute the terms of the trust or the settlor's competency at the time of creation of the trust. Nonprobate assets usually fall into three categories: - Revocable Trust Property – Assets that are titled in the name of a valid revocable trust do not need to go through probate.