You have worked hard for everything you have—your home, your savings, perhaps even a fund for your grandchildren. While many people believe a will is sufficient to ensure these assets go to the intended beneficiaries, that is not always the case.
When you pass away with only a will, your family must typically navigate probate before receiving their inheritance. This process takes time, costs money, and puts your private financial affairs on public record.
So, what is probate, exactly?
According to the New York State Unified Court System, probate is the legal process of validating a will and appointing an executor under court supervision. Filing fees in New York Surrogate’s Court depend on the size of the estate, with larger estates facing fees up to $1,250 and potential additional costs depending on the proceedings.
Ways to keep your estate out of probate court
You can shield your assets from the probate process using these common legal instruments:
- Revocable living trust: You transfer assets into a trust during your life. Upon your death, they pass directly to your beneficiaries without going through probate, with greater privacy and fewer administrative costs. You maintain full control while you are alive.
- Beneficiary designations: For bank accounts and life insurance, naming a beneficiary allows the asset to transfer automatically. In New York, these “Payable on Death” accounts generally pass outside of probate. However, complications can arise if the beneficiary predeceases the owner or if there are disputes or other issues involving the account.
- Joint ownership: In New York, some forms of shared ownership allow property to pass directly to a surviving owner when one owner dies. New York also recognizes Transfer-on-Death (TOD) deeds, which allow real estate to pass to a named beneficiary without probate.
- Small estate shortcut: If your personal property assets held in your name alone total $50,000 or less, and you do not own real estate in your own name, your family can use a simplified ‘Voluntary Administration’ instead of formal probate.
By strategically utilizing these New York-specific tools, you can help your assets pass directly to your heirs, saving them time, court delays and unnecessary legal expenses.
Protect what you leave behind
Your loved ones have a significantly better chance of avoiding probate when a will is paired with the right instruments. When every component of your estate plan is properly coordinated, your loved ones can receive what you intended for them efficiently, privately and without the burden of court intervention.