How to Avoid Probate in Connecticut

Avoiding probate can save your beneficiaries time, reduce costs and protect their privacy while your estate is being settled. You can keep your Connecticut estate out of the probate court system by using several strategies. Common approaches include creating a living trust, naming beneficiaries on financial accounts and jointly owning property. Here's what you need to know.

A financial advisor can help you create a plan to protect your estate in Connecticut.

Understanding Probate in Connecticut

Probate in Connecticut is a legal process used to administer a deceased person’s estate. This task includes validating the will, if there is one, and distributing assets according to the will or state law if no will exists. The probate court oversees this process to ensure all debts and taxes are paid before the remaining assets are distributed to beneficiaries .

The probate process in Connecticut typically takes several months to over a year, depending on the complexity of the estate. Factors such as the size of the estate, disputes among heirs and the time needed to settle debts and taxes can influence the duration.

Probate is also expensive. An estate may pay thousands or tens of thousands of dollars to cover court costs, filing fees, executor compensation, attorney fees and other costs encountered during the probate process.

In Connecticut, estates valued over $40,000 are generally subject to probate. This includes all assets owned solely by the deceased and not jointly held or designated to pass directly to a beneficiary. However, for estates valued at $40,000 or less, Connecticut offers a simplified probate process. This small estate procedure is faster and involves less paperwork, making it easier for heirs to manage.

Reasons to Avoid Probate

Probate can be a lengthy and costly process, especially in Connecticut. Here are five common reasons why you might want to avoid it:

• Time-consuming: Probate can take months, or even years, to complete, delaying the distribution of assets to heirs. Meanwhile, family members and other beneficiaries are denied the assistance that the assets would provide.
• Costly fees: Legal and court fees can significantly reduce the value of the estate.
• Public record: Probate proceedings are public, exposing personal and financial information to anyone who wants to look.
• Complexity: The process can be complicated and overwhelming, requiring detailed paperwork and court appearances. Hiring estate attorneys can effectively outsource this work, but at the cost of sizable additional fees for legal services.
• Family disputes: Probate can increase the likelihood of family conflicts over the estate. If these conflicts give rise to lawsuits, it can add significantly to the cost and delay of settling the estate and distributing assets to heirs.

How to Avoid Probate in Connecticut

Fortunately, there are several strategies to help you avoid probate and streamline the transfer of your assets. Here are three common ones to consider:

Establish a Living Trust

A living trust is a legal document that places your assets into a trust during your lifetime. Upon your death, these assets are transferred to your beneficiaries without going through probate.

With a living trust, your heirs can access their inheritance faster and without the additional legal fees associated with probate court. Additionally, a living trust keeps your estate matters private, which may be an important distinction as probate is a public process.

To establish a living trust in Connecticut, you need to draft a trust document, name a trustee and transfer your assets into the trust. The trustee can be yourself or another trusted individual. After your death, the successor trustee you've named will distribute the assets according to your instructions.

Joint Ownership

Joint ownership is an effective method for avoiding probate in Connecticut. When property is set up to be owned jointly with right of survivorship, it automatically passes to the surviving owner upon the death of one owner, bypassing the probate process.

A different set of rules may apply if, rather than joint ownership with right of survivorship, an account is set up as one jointly owned by tenants in common, a somewhat different arrangement. In this case, the property may be distributed according to the terms of the will if there is one. If there is no will, it will belong to the survivor.

Designate Beneficiaries

Transfer-on-death (TOD) registrations and payable-on-death (POD) accounts offer a straightforward way to avoid probate in Connecticut. By naming a beneficiary on assets like real estate, bank accounts or securities, the ownership transfers directly to the beneficiary upon the owner’s death, bypassing the probate process.

Setting up a TOD registration is relatively simple. Financial institutions often provide TOD forms that allow account holders to designate beneficiaries. For real estate, Connecticut residents can file a TOD deed, officially transferring the property to a named beneficiary upon death.

Similar to TOD designations on brokerage accounts and real estate, POD designations allow  bank accounts to immediately pass to their named beneficiaries without going through probate when the original owner dies

However, beneficiaries must be clearly identified to avoid disputes. Additionally, changes to TOD and POD beneficiaries should be updated promptly to reflect the owner’s current wishes.

Bottom Line

Avoiding probate in Connecticut can offer many advantages, from minimizing costs and delays to preserving privacy. By implementing strategies like establishing a living trust, setting up joint ownership and designating beneficiaries for your financial accounts and property, you can streamline the transfer of your assets.

Estate Planning Tips

• A financial advisor can help you create an estate plan to avoid common mistakes that could cost you and your family money. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now .
• For a primer on Connecticut's inheritance laws, you can read SmartAsset's guide .

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