When we leave this earth, our survivors are left behind to manage our affairs and our physical belongings, otherwise known as our stuff. By planning ahead we can relieve our loved ones of the suffering that comes with dealing with probate, attorneys, and a drawn-out process. They are already suffering emotionally. Why add more to their burden when a little planning can ease their pain? Today, we’ll be discussing how to bypass probate for our stuff. The physical things of value that we leave behind, primarily, our homes and vehicles.
As a Lockheed Martin employee, you have benefits such as life insurance and a 401(k) that both list specific beneficiaries. By listing specific beneficiaries, you have taken the steps necessary to bypass probate because a beneficiary allows your assets to transfer directly to the person you specified. Your personal property like your home or your vehicle doesn’t naturally come with the ability to list a beneficiary. To bypass probate for your home or your vehicle, most people think you need to have them owned by a trust. It is true that if you do have your personal property owned by a trust, then those items will bypass probate and be handled according to the rules of the trust. But not everyone needs a trust and most everyone owns a car or a piece of real estate. So, what does that person do who owns a car and a home but doesn’t need a trust? You add a beneficiary to your car and home.
How in the world do you add a beneficiary to your home and auto, you might be asking? Well, the answer might surprise you as many people do not even know this possibility exists and it’s quite easy to do! To add a beneficiary to your vehicle, at least in Texas, all you need to do is fill out a couple of forms and file them with the Department of Motor Vehicles (DMV). You can find the full instructions HERE, but the gist of it is you complete the Beneficiary Designation for a Motor Vehicle (VTR-121), then the Application for Texas Title and/or Registration form (130-U), which will reissue the title with the beneficiary’s name on it and add the beneficiary to the DMV database, and submit them both to the DMV. Voilà, you now have set up your vehicle to bypass probate and transfer directly to your beneficiary.
Surprise, you can do something very similar with your home or real estate. Adding a beneficiary and bypassing probate is done by adding a Transfer on Death Deed. TexasLawHelp.org has put together a toolkit to walk you through the process and tell you everything you need to know. You can even find their frequently asked questions HERE. In short, you will obtain a copy of your current deed from the county clerk. Then, you fill out the necessary forms, and having legal assistance to help you fill it out is highly recommended. Next, have the documents notarized and file them with the county clerk. Tada, you’ve done it again! You’ve bypassed probate and allowed your home and real estate to directly transfer to your beneficiary.
These are the kinds of things our Lockheed Martin specialists can share with you when you do your comprehensive financial planning through us! We’re not just experts on your benefits but in every area of planning. Give us a call today at 817-210-3444 or click HERE to book a complimentary consultation.
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