Avoid Probate In Indiana

One of the most powerful estate planning tools is a trust. A trust is a legal arrangement that allows assets to be held and managed by a trustee on behalf of beneficiaries. When properly funded, assets placed in a trust are not subject to probate because ownership legally passes through the trust rather than the individual estate.

How Revocable Living Trusts Work

A revocable living trust is the most common type used for probate avoidance in Indiana. During your lifetime, you can add or remove assets, change beneficiaries, or revoke the trust entirely. Upon your passing, the trust becomes irrevocable and the trustee distributes assets as instructed.

Benefits of Using a Trust to Avoid Probate:

• Bypasses the court system entirely
  
• Saves time and legal fees
  
• Maintains privacy, since trusts are not public record
  
• Allows for greater control over how and when assets are distributed
  

Example: A retired couple in Hamilton County created a living trust for their real estate and financial accounts. When the husband passed away, all assets transferred directly to his wife without any court involvement or delay.

For more on how trusts work in Indiana, visit our page on Wills and Trusts.

Another simple way to bypass probate in Indiana is through transfer-on-death (TOD) deeds and beneficiary designations. These tools allow you to name a recipient for your assets so they transfer immediately upon your death, without needing court approval.

Using TOD Deeds for Real Estate

Indiana allows real estate owners to create a TOD deed that names a beneficiary who will automatically inherit the property after the owner’s death. This deed is filed with the county recorder and does not affect ownership while you are alive.

Beneficiary Designations for Financial Accounts

Bank accounts, life insurance, retirement accounts, and investment portfolios often allow you to name payable-on-death (POD) or transfer-on-death beneficiaries. As long as the proper forms are completed and kept current, these accounts will transfer directly to your named beneficiaries without probate.

Key Reminders:

• Make sure beneficiary forms are updated regularly
  
• Double-check that the designations do not conflict with your will or trust
  
• Keep records of all filed TOD or POD designations
  

These tools are straightforward to implement, but guidance from an estate planning attorney ensures they are correctly structured. For more on estate tools in Indiana, see Avoid Probate with Proper Planning.

Another commonly used strategy is holding property as joint tenants with rights of survivorship (JTWROS). This form of ownership allows the surviving joint owner to inherit the property automatically upon the other owner’s death.

Types of Property Commonly Held Jointly

• Real estate
  
• Bank accounts
  
• Vehicles
  

Important Considerations

While joint ownership can be effective, it must be set up properly and monitored over time. Adding someone to your property title can create unintended tax or legal consequences, so always consult with a qualified attorney before doing so.

Joint ownership can also override a will or trust if not coordinated properly, which is why professional estate planning is essential. Learn more about how joint ownership works with the Indiana Probate Process.

After retiring in Monroe County, David and Susan wanted to ensure their children could inherit their home and savings without delay. Working with the attorneys at Webster & Garino, they:

• Created a revocable living trust for their home and investment accounts
• Filed a TOD deed for their real estate
• Named beneficiaries on all retirement and bank accounts
• Updated their powers of attorney and advance healthcare directives

When Susan passed away, the estate avoided probate entirely. The trust documents and TOD deeds allowed their children to take immediate ownership of all assets without court interference. Their proactive planning made a difficult time less stressful and saved thousands in legal costs.