Probate is a court procedure for administration of an estate according to the decedent’s will. It can be a complex process, which involves notifying heirs and interested parties, pays outstanding debts, including taxes, and distributing the assets to designated beneficiaries. Legal disputes may tie the case down for a lengthy period of time, and probate expenses can be considerable. However, there are estate planning methods that can allow certain assets to avoid probate entirely. 

Here are ways that property in Connecticut can pass directly to beneficiaries upon the owner’s death while bypassing probate court involvement:

1. Joint ownership with rights of survivorship — One of the most common methods is owning property together with another person. For example, real estate, bank accounts, or investment accounts can be titled in the names of two or more people as joint tenants with rights of survivorship (JTWROS). Upon the death of one owner, the property automatically passes to the surviving owner(s) by operation of law, rather than through probate. This method is common among married couples but can be used between any individuals. The surviving joint owner simply needs the decedent's death certificate to retitle the asset.

2. Transfer-on-death (TOD) and payable-on-death (POD) designations — Connecticut allows bank accounts to be set up with payable-on-death (POD) or transfer-on-death (TOD) beneficiaries. The Uniform Transfer on Death Security Registration Act permits stocks, bonds, and brokerage accounts to name beneficiaries who receive the assets directly. Motor vehicles likewise can be owned with transfer-on-death registration. However, Connecticut law does not allow real estate to be titled with a transfer-on-death deed.

3. Life insurance and retirement accounts — Life insurance policies require the owner to designate a beneficiary. Upon the policyholder’s death, the proceeds pass directly to the named beneficiary outside of probate. The beneficiaries just need to file a claim with the company, providing necessary documentation such as a death certificate. Retirement accounts and plans, such as IRAs, 401(k)s and pensions, normally have designated beneficiaries who will receive benefits upon the owner’s death.

4. Revocable living trusts — A revocable living trust is a powerful and flexible instrument for avoiding probate. The creator transfers assets into the trust during their lifetime and names beneficiaries to receive the assets upon their death. The creator can also serve as trustee during their lifetime. After death, a successor trustee takes over and distributes the assets to beneficiaries in accordance with the trust’s terms, entirely outside of probate. 

Taking advantage of these options requires correct titling of assets and clear beneficiary designations. Also, you should regularly review and update these instrumentalities to ensure they continue to reflect you wishes. Consulting an estate planning attorney familiar with Connecticut can maximize probate avoidance and promote a smooth transfer of property upon death.

Gesmonde, Pietrosimone & Sgrignari, L.L.C. in Hamden and East Haven helps Connecticut clients in all aspects of estate planning. For more information, please call (PHONE} or contact us online.