How Can My Heir Avoid Probate?

 Q: I'm a naturalized U.S. citizen of Japanese descent, living in New York. I am single, retired, and have no family. I own a house, and have a checking account and modest savings. I also have a will. My heir is a Japanese citizen living in Japan. How do I plan so she will receive her inheritance from me without having to go through probate, and without unnecessary travel to the U.S. –ST via email

 

A: There are two ways to accomplish your goal.

For readers who don’t know, probate is the legal process in which a state court accepts your will as a valid document. In New York – unlike some other states -- the probate process is actually quite fast and inexpensive. Most  state residents have no reason to try to avoid it.

 But your situation is an exception because your heir lives overseas.

 One option is to transfer your assets into a revocable trust, naming your heir as the trust beneficiary, says Eric Kramer, a Uniondale New York estate lawyer. As the trustee, you would still control the assets during your lifetime.

 Another is to list her as a beneficiary on your bank accounts, and have the deed to your house changed to make her a 1% joint owner with right of survivorship. (If you later decide to sell your house, however, as a 1% joint owner, your heir will have to sign off on the sale, notes Kramer.)

 Either way, your friend won't have to go through probate. Trust assets,  assets that are jointly-owned  with right of survivorship, and accounts with named beneficiaries, don't go through probate because they don’t pass to their new owner through your will.

 Your friend will need a lawyer in New York to handle the sale of the house and the transfer of the assets to her after your death. But she won't have to travel to the U.S.