NY Probate Avoidance Techniques

To understand how to accomplish these probate avoidance techniques in New York and what laws apply, it's important to look at each one separately. However, keep in mind that this is general information, not legal advice. It's always recommended to consult a legal professional for specific guidance.

1. Set Up Payable-on-Death Accounts (POD)

   • The Paperwork: You need to complete forms provided by your bank to designate a POD beneficiary.
   • Adding a POD to Joint Account: This can typically be done at the same financial institution where the joint account is held.
   • Choosing Beneficiaries: You can name anyone as a beneficiary.
   • If a Beneficiary Dies Before You: You should update your POD designation.
   • Changing Your Mind: You can change POD beneficiaries at any time.
   • Claiming the Money: After your death, beneficiaries can claim the money with proper identification and a death certificate.
   • Applicable Laws: New York Banking Law Section 675.

2. Name a Beneficiary for Retirement Accounts

   • Choosing a Beneficiary: You can name a person or entity as a beneficiary.
   • Required Minimum Distributions: These are governed by federal law (IRS rules).
   • Applicable Laws: Federal tax laws and IRS regulations.

3. Name a Beneficiary for Stocks and Bonds

   • Transfer-on-Death Registration: You can register your securities with a TOD beneficiary.
   • Government Bonds and Notes: These can be registered in beneficiary form.
   • Applicable Laws: Generally governed by the terms of the brokerage or financial institution.

4. Name a Beneficiary for Vehicles

   • Transfer-on-Death Registration: New York does not currently allow TOD registration for vehicles.
   • Joint Ownership with Right of Survivorship: This is an option where the surviving owner automatically owns the vehicle.
   • Special Procedures: Consult the New York DMV for guidelines.

5. Name a Beneficiary for Real Estate

   • Transfer-on-Death (TOD) Deed: New York does not currently recognize TOD deeds for real estate.
   • Alternatives: Consider joint ownership or a living trust.
   • Possible Drawbacks: Varies depending on the method chosen.

6. Hold Property in Joint Ownership

   • Joint Tenancy, Tenancy by the Entirety, Community Property: These are recognized in New York and can avoid probate.
   • Alternatives: Living trusts or POD accounts.

7. Create a Living Trust

   • Avoids Probate: Property in the trust bypasses probate.
   • Advantages: Privacy, potentially faster distribution of assets.
   • Still Need a Will: To cover assets not in the trust.
   • Creating and Managing the Trust: Requires legal documents and proper management.
   • Applicable Laws: New York Estates, Powers & Trusts Law.

8. Special Procedures for Small Estates

   • Qualifying for Simplified Procedures: New York has a small estate administration process for estates valued under a certain threshold.
   • Affidavits for Claiming Assets: Simplified processes for transferring certain assets without full probate.
   • Simplified Court Procedures: Available for smaller estates.

For detailed guidance and to ensure compliance with all relevant laws, consulting with an estate planning attorney in New York is highly advisable.