One of the most common reasons for estate planning in Missouri is the looming specter of probate – which is an expensive, time-consuming, and complex process. Successfully avoiding probate can save you and your loved ones time, money, and stress. In this post, we will explore what probate is, how to avoid probate in Missouri, why it matters, and which legal tools can help you achieve a smooth asset transfer.
What Is Probate and Why Avoid It?
When used in the context of a deceased person’s estate, the term probate most often refers to the court-supervised process for distributing the deceased person’s assets, validating their will, and settling debts. In Missouri, any asset that is owned in the decedent’s name alone with no valid beneficiary designation in place requires probate to determine who now owns that asset. A full probate estate is required to be opened for all decedent’s estates valued over $40,000. The process can be lengthy, expensive, and public—so if privacy, efficiency, and saving money are concerns for you, you may want to keep reading.
Strategies to Avoid Probate in Missouri
Here are some effective ways to keep your estate out of probate court:
1. Create a Revocable Living Trust
- A revocable living trust allows you to transfer ownership of assets into a trust during your lifetime – so those assets are no longer in your individual name.
- You retain control as trustee and name a successor to manage and distribute assets after your death.
- Assets owned by the trust are no longer owned by you as an individual, so those assets bypass probate upon your death.
- The trust document details what happens with those assets upon your death, and it is the responsibility of your successor trustee to
2. Beneficiary Designations/Non-Probate Transfers
- Missouri law allows you to name beneficiaries on just about any asset: real property, personal property, financial accounts, retirement plans, and life insurance policies – but proper procedure must be followed to correctly and effectively utilize non-probate transfers.
- Assets pass directly to the named individuals without probate immediately upon the death of the owner of the asset – as the name suggests, without the need for the probate process.
3. Joint Ownership with Right of Survivorship
- Property owned jointly with another person (e.g., spouse) often will automatically transfers to the surviving owner. But be careful – there are multiple types of “joint” ownership and not all of them work the same way, or have this same benefit.
- This is a common way to pass real estate, vehicles, and bank accounts to a spouse – but it is not without pitfalls and should not necessarily be solely relied upon.
Additional Tips for Missouri Residents
- Consult an estate planning attorney: Missouri laws are specific, and professional guidance ensures your documents are legally sound. A competent estate planning attorney can also help talk you through pitfalls of the various strategies used to avoid probate, and how best to counteract or avoid those problems.
- Keep your estate plan updated: Life changes like marriage, divorce, or new children can affect your plan – it is important to speak with your estate planning attorney every few years, just to be safe!
- Avoid common mistakes: Failing to fund your trust or update beneficiary forms can lead to probate despite your best intentions. While forgetting to name a beneficiary or transfer an account to your trust will not unravel the entire plan, it can become a headache for your future personal representative/successor trustee if that one account becomes the only asset going through probate – slowing down the whole process.
Avoiding probate in Missouri is not just about legal paperwork—it is about protecting your legacy and easing the burden on your loved ones. With smart planning and the right tools, you can ensure your assets pass smoothly and privately. Contact Langworthy Law Firm, LLC today to set up an appointment to discuss your estate planning. We look forward to speaking with you!
