A last will is the final protection in ensuring you pass down your beloved possessions to your loved ones. But in Missouri, even a will passing all of the requirements for validity may not save you from court costs. If the deceased’s assets go above a low threshold in value, they may need to go through a formal legal process.
Missouri’s probate threshold
If the probate estate’s value exceeds $40,000 in value, it must go through the formal probate administration process. In Missouri, a will does not help you skip probate even if it dictates how the court should distribute your assets. An estate will require court oversight to legally transfer ownership if above this threshold.
Any estate that goes to probate may need to have their will legally approved by the court. The court will act as the estate’s legal supervisor and formally appoint your estate’s representative. The full probate process may take months to complete, as there is a mandatory 6-month creditor claim period. During these 6 months, the estate cannot legally close or distribute assets.
The probate process can add extra time and effort to what could be a straightforward affair. Even an estate with modestly valued home or assets may face court processes if the estate’s value exceeds the state’s threshold.
A defense against the probate trigger
While probate estates valued lower than $40,000 can utilize a simplified small estate court process, you can bypass the courtroom entirely by ensuring assets transfer directly to beneficiaries. Even if your total estate has a higher overall value, you can avoid probate court by utilizing a variety of specific legal tools.
Proper asset management can help you ensure your beneficiaries receive valuable assets without costly and time-consuming court procedures. You can avoid Missouri’s probate procedures by ensuring your assets transfer directly to beneficiaries outside of court. There are multiple strategies to accomplish this.
- Transfer on death (TOD) deeds or registrations: A beneficiary or TOD deed allows you to name a beneficiary that automatically inherits your property upon death. No court involvement is needed to transfer the property. You can use a TOD deed for many types of assets, including real estate, vehicles and investment.
- Joint ownership: Co-owning property with “right of survivorship” allows owners to pass on property to surviving owners upon death. Co-owned property must use specific phrases to outline the right of survivorship.
- Revocable living trust: One of the most common and comprehensive measures is to establish a trust. You transfer legal ownership of your assets into your trust while alive and re-title your assets. Your named successor may distribute assets on your behalf without court involvement.
Preserving your legacy
Costly fees and a half-year waiting period is hardly ideal in estate distribution. The earlier you plan and strategize, the easier asset management will be for your family. Consider contacting a legal professional and determine the best pathway to navigate estate inheritance.