You don’t have to put assets into a trust to avoid probate. Other techniques:
Joint ownership. If assets are titled as “joint ownership with right of survivorship,” and one co-owner dies, the survivors automatically inherit the property, without going through probate.
Retirement accounts. Contribute as much as possible to IRAs and employer-sponsored plans. At your death, the account will go to the beneficiary or beneficiaries you’ve named.
Accounts with beneficiaries. Most states offer payable-on-death (POD) and transfer-on-death (TOD) procedures for bank and brokerage accounts. Either way, you name a beneficiary or beneficiaries to inherit the account after your death.
Life insurance policies and annuities also pass to beneficiaries you have named, with no need for probate.
Gifts. Perhaps the simplest way to arrange for assets to avoid probate is to give them away while you’re still alive.
In 2004, you can give away up to $11,000 worth of assets per recipient, without worrying about gift taxes.
Be sure you don’t give away assets you think you might need some day.
