To accomplish these probate avoidance techniques in California, specific laws and procedures apply. Here's an outline of each technique and the relevant legal frameworks:
1. Set Up Payable-on-Death (POD) Accounts
- The Paperwork: You need to complete forms provided by your bank to designate a beneficiary.
- Adding a POD Designation to a Joint Account: This involves bank procedures; the law permits adding a POD beneficiary to joint accounts.
- Choosing Beneficiaries: You can name anyone as a beneficiary.
- If a Beneficiary Dies Before You: The account will be part of your estate unless you name a contingent beneficiary.
- If You Change Your Mind: You can change the beneficiary by following bank procedures.
- Claiming the Money: Beneficiaries must present death certificates and identification to claim funds.
2. Name a Beneficiary for Your Retirement Accounts
- Choosing a Beneficiary: You can name any individual or entity.
- Required Minimum Distributions: Governed by federal law, particularly the SECURE Act.
3. Name a Beneficiary for Your Stocks and Bonds
- Transfer-on-Death Registration: California allows TOD registration for securities.
- Registration of Government Bonds and Notes: Governed by federal regulations.
4. Name a Beneficiary for Your Vehicles
- Transfer-on-Death Registration: California Vehicle Code permits TOD registration for vehicles.
- Joint Ownership With Right of Survivorship: Automatically transfers ownership upon death.
- Special Transfer Procedures for Vehicles: Follow DMV guidelines.
5. Name a Beneficiary for Your Real Estate
- Can You Use a TOD Deed?: Yes, under California's Assembly Bill 139.
- How It Works, Drawbacks, Preparing and Recording the Deed: AB 139 outlines the process and requirements.
- Canceling the Deed and Claiming Property: The deed can be canceled as per the statute, and the new owner follows standard property transfer procedures.
6. Hold Property in Joint Ownership
- Kinds of Joint Ownership: Includes joint tenancy, tenancy by the entirety (not in CA), and community property.
- Joint Tenancy: Passes ownership to the surviving owner(s).
- Community Property: Special rules apply in California, especially for married couples.
7. Create a Living Trust
- Avoiding Probate and Other Advantages: The trust holds title to your property, bypassing probate.
- Creating and Managing a Living Trust: Must be done in compliance with California Trust Law.
- Taxes and Record Keeping: Governed by both state and federal tax laws.
8. Special Procedures for Small Estates
- Qualifying as a Small Estate: California Probate Code defines small estate limits.
- Claiming Assets With Affidavits: Simplified process for estates below a certain value.
- Simplified Court Procedures: For estates that slightly exceed the small estate limit.
Each of these techniques should be executed with an understanding of the specific legal procedures and regulations in California. It's essential to consult with a legal professional for detailed guidance and to ensure compliance with all applicable laws. Remember, this information is not legal advice but a general guide to understanding these processes.