Talk of The Villages Florida - View Single Post - To trust, or not to trust?
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Old 02-20-2015, 10:30 AM
outahere outahere is offline
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Quote:
Originally Posted by Bonnevie View Post
but if your son is your designated beneficiary on bank and brokerage accounts, doesn't that avoid probate?
He is the contingent beneficiary on the accounts, but that only takes effect if we both pass away at the same time. Otherwise the accounts go to the primary beneficiary and, we know from experience, that you can not have a beneficiary on an inherited IRA or 401(K).

The only way to avoid probate is if his name is on the accounts, or if they are owned by the trust. The problem is if he should be sued and found liable, the accounts with his name on them would be taken to settle the debt. That is also true if we were to put his name on the deed to the house - we could be forced to sell to settle a judgement against him.

According to the attorney, probate in Florida can take anywhere from 6 months to a year and, according to Florida law, you must have an attorney represent you in Probate Court. The law also states that they must charge a minimum of 3% of the estate (they can charge more). Anything going through probate is tied up until the court rules. That would be especially bad in the case of a house, which would have to be maintained, taxes paid, etc. until the court rules.