Having a will does not avoid probate

Having a will does not avoid probate

Attorney Tom Olsen: Carole, you're on WDBO. Go ahead.

Carole: Hi. I'm sorry if this question has been covered, but I'm not understanding, or I'm not clear on, the rationale behind the ladybird. I have a home that I own outright. I've lived here 25 years. I'm the only one on the title. My will is stated to share and share three ways with my children on my will. I'm not sure why the ladybird deed is important or what the point of it is. I'm so sorry.

Attorney Tom Olsen: Do not apologize, Carole. Carole, the purpose is to avoid a probate. Simply having a will does not avoid probate. Having a will simply directs what happens to your assets when they go through probate. People are interested in avoiding probate because it's expensive, so a ladybird deed is a tool to avoid probate on your home so that when you pass away, your home would automatically go to your adult children, no headaches, no hassles, no probate.

Carole: What else in the will would have to go through probate, my car, other things? Is there any way to avoid probate for those other things?

Attorney Tom Olsen: Sure, of course. First of all, some kinds of assets don't go through probate: IRAs, retirement accounts, life insurance. Anywhere you get to name a beneficiary you can assume is not going through probate. In Florida, cars, boats, vehicles don't go through probate. It's easy to avoid probate on your bank accounts: checking, saving, CD, money markets, by keeping those accounts in your name only, Carole, but making them POD, payable on death, to your adult children. If you make your bank accounts POD for your kids and you pass away, the only thing they will need to do is show the bank or your credit union your death certificate and they'll turn the money over to them, no probate required.