Beneficiaries and Estate Planning For Inheritance Property

Beneficiaries refer to people who receive personalcomplete. Much depends on estate value, types of
property, real estate or money from a benefactor.inheritance assets, and court caseload. In order to
When inheritance is involved, the benefactor refers toavoid probate, decedents can designate beneficiaries
a person who is deceased. Decedents can designateto receive proceeds in bank accounts, retirement and
beneficiaries within their last will or by assigninginvestment portfolios, and life insurance policies.
beneficiary rights within life insurance policies, bankBeneficiaries can be established for real estate through
accounts or property titles.Joint Tenants of Survivorship.
The most common beneficiaries include the survivingMotor vehicles, recreational vehicles, boats and trailers
spouse, children, relatives and friends. Decedents cancan be jointly titled for beneficiary designation. Upon
also elect to bequeath inheritance property anddeath, the designated recipient must present the
monetary gifts to non-profit organizations, charities,original vehicle title, death certificate and copy of the
scientific research groups, or institutes of higherwill or probate records and apply for a new title. The
education.recipient can designate a new beneficiary to receive
A last will and testament allows decedents tothe property in the event of their death.
designate how their property and financial assets willProperty exempt from probate may require filing
be distributed. When decedents die without executingcertain documents in order to legally make claim. For
a last will, property is distributed according to probateexample, while retirement accounts and financial
law. Regardless of whether decedents execute a Willportfolios avoid probate, the estate executor must
or not, the estate must be managed by a probatepresent date of death valuation forms to the county
personal representative.tax assessor's office. If the decedent owed taxes, the
The estate administrator is responsible for many dutiesestate is responsible for paying outstanding taxes
and must adhere to probate laws established in thebefore asset distribution can occur. Financial institutions
state where the decedent resided. Some statescannot distribute funds until the tax assessor signs off
require Administrator's to obtain a cash bond. Otherson the forms.
require court confirmation, while some states allowWhile most of us don't relish the thought of who will
Administrator's to manage the estate without courtreceive our belongings when we die, it is important to
interference.engage in estate planning. At minimum, execute a valid
Estates must undergo the process of probate unlesslast will and update it when major changes occur, such
the decedent established a trust. Assets placed insideas buying or selling real estate.
a trust are no longer considered part of the estate andEstate planning can be accomplished by various
are exempt from probate. Everything owned by themeans. Individuals with estates valued below $50,000
decedent is held in probate to ensure proper protocolmay only require a basic will, while those with larger
is followed. Probate grants heirs and beneficiaries theestates may require an estate planner or probate
option to contest the decedent's last will and giveslawyer. Keep the Will, along with life insurance policies
creditors the opportunity to make claims against theand property titles in a safe location and provide
estate.copies of the documents to the appointed probate
On average, probate takes three to nine months toexecutor.