The good news is that not everything must go through probate. With the right plans in place and the correct planning tools, some of your assets may be able to skip probate entirely. What type of assets? And how can they help? Here's what you need to know.

1. Accounts With Beneficiaries

Accounts that hold cash or investments often allow you to designate one or more beneficiaries to receive those funds upon your death. This commonly includes IRA accounts, your employer-based 401(k), brokerage accounts, and  other investment funds. Depending on the type of account, the funds may need to be transferred to the beneficiary's account or the account owner may be renamed.

2. Accounts That Are Payable on Death

The payable on death designation process operates similarly to a beneficiary. Many banks and credit union accounts (both savings and checking) include the option to designate who can receive the funds upon the account holder's  passing. Such accounts are particularly beneficial for providing for your final memorial arrangements or to provide for your family until probate clears other assets.

3. Jointly-Held Accounts

Do you have an account owned jointly with your spouse, adult child, parent, or other family members? A joint account with right of survivorship is one that both owners can use at any time. While that account may be considered  partially your property while you are alive, it becomes wholly the other owner's property when you pass. As with payable on death accounts, this is good for your family's immediate needs.

The downside of jointly-held accounts, of course, is that the joint owner has access to the account while you're alive. Therefore, it should be used only with careful consideration beyond just the ease of estate planning.

4. Assets In a Trust

Trusts aren't as well-known by many Americans as the above accounts, but they are one of the best ways to avoid probate. Assets that were transferred to a legally valid trust either while you're alive or upon your passing are no longer  considered your personal estate. The trust takes ownership and the trustee makes decisions for them. As a separate entity, the trust is not subject to probate.

Trusts come in a variety of shapes and sizes depending on your assets, your goals, your budget, and your needs. You can put just one asset - such as your stake in a business you operate - into a special trust or put the vast majority of  assets in instead. You can use both revocable trusts which can be altered in your lifetime or irrevocable trusts which cannot.

5. Life Insurance Policies

Life insurance is a good tool for estate planning - not least of which because the insurance payout bypasses probate unless the estate is the beneficiary. Your heir can usually provide the necessary documentation and receive the  proceeds immediately.

Some people use a small life insurance policy to pay for their funeral arrangements (especially if they have preplanned these) or to keep an heir out of probate.

Where to Learn More 

While these and other less-common assets can be planned to avoid probate, save time, and protect everyone's privacy, they must be done correctly to be successful. And the best way to ensure this is to work with an experienced  estate planning attorney in your state.

Donald B. Linsky & Associate PA  provides Florida residents with help in all their estate planning needs. We will work with you to find the most expedient - but most legally enforceable - way to pass on your estate to your loved ones. Call today to make an appointment.