The numerous options offered to home buyers when titling real estate have significant tax, asset protection, and estate planning concerns. Failing to consider these matters often results in unexpected taxes, liability, fees, and headaches.
The technique by which home buyers title real estate determines whether a probate will befall. When people talk about Probate, they are referring to the court-supervised administration of estates.
How can people avoid probate fees? First, they could create a revocable trust and transfer the property to themselves as trustee. In that case, the asset would not have to pass through a probate process, because it would be handled directly by a successor trustee. For the more details on estate planning, you can navigate to http://www.rubinhay.com/newton-estate-planning-attorney_pa23282.htm
However, people need to ensure that their trust is fully "funded" at the time of his death. Otherwise, a probate might still be required. Often, trust documents appear to be valid on their face, but the underlying assets have not been funded to the trust.
What if people never establish a revocable trust? Could they get by with joint tenancy? If anyone who is married, he could avoid probate at the death of the first spouse by owning his real property as in joint tenancy with his spouse.
Also, people might benefit from some estate tax planning, which may be better facilitated when planning with trusts. Ultimately, ownership of the property in a funded revocable trust while giving full consideration to the real estate's community property status and estate tax matters will give people the best protection.