Estate Planning: Avoiding Probate & Preparing for the Future
The Cornerstone Financial Group has been serving clients for over 30 years, and in that time, we've had the privilege of assisting many families in settling their estates. Estate planning is a topic that few want to discuss, yet it’s something everyone needs to address. Just in the past month, we’ve helped three different clients navigate the complexities of estate settlement and distributing assets to beneficiaries, reinforcing the critical importance of proper planning.
In this post, we’re highlighting a key aspect of estate planning: probate—what it is, why it can present challenges, and how you can take steps to avoid it.
Before we begin, we want to stress, the below blog post is not attempting to be legal advice nor does Cornerstone Financial Group provide legal services. This post in only for informational purposes. Please consult your financial advisor or tax advisor before making any changes.
What Is Probate?
Probate is the court-supervised process of distributing assets after someone passes away. One of the purposes of probate is to give time for any creditors of the estate to file a claim on the assets. Having a valid will does not avoid probate. Actually, any assets that are directed by your will ensures your estate will go through probate (depending on the size of your estate). If no will exists, the state will distribute assets according to intestacy laws, which may not align with your wishes.
While probate ensures legal oversight, it has several drawbacks:
- Time-Consuming – The process can take months or even years to resolve.
- Costly – Court fees, attorney fees, and other expenses can significantly reduce the estate’s value.
- Public – Probate records are public, meaning personal financial details become accessible.
Fortunately, with careful estate planning, probate can often be avoided.
How to Avoid Probate
One of the simplest ways to bypass probate is by keeping your probatable assets below $100,000 (for the state of Illinois)1,2 A probatable asset is any asset that is not directed by law. Assets that have beneficiaries or are in joint tenancy should avoid probate. To protect your estate, consider the following strategies:
- Establish a Trust – Assets placed in a properly structured trust bypass probate and allow for smoother distribution to heirs.
- Designate Beneficiaries – Retirement accounts, life insurance policies, and investment accounts should have named beneficiaries.
- Joint Ownership with Rights of Survivorship – Assets such as real estate or bank accounts can be structured so they automatically transfer to the surviving owner.
A commonly overlooked asset that can trigger probate is vehicles. If the total value of your cars exceeds $100,000, they should be titled in the name of your trust or, where allowed by state law, have a Transfer on Death (TOD) designation to prevent probate.
Upcoming Estate Planning Webinar
Understanding estate planning takes time, but we’re committed to helping you make informed financial decisions. None of the above information should be taken as recommendations. We would encourage everyone to review their estate plan with a qualified estate planning attorney before making any changes. Over the next few months, we will continue sharing estate planning insights, and we are also excited to announce an upcoming estate planning webinar.
We will be hosting an attorney with over 50 years of experience working with high-net-worth individuals to discuss key estate planning strategies. While the date is still being finalized, the webinar is scheduled for early summer—stay tuned for more details.
We’re Here to Help
At Cornerstone, our mission is to equip you with the knowledge and resources needed to navigate complex financial decisions. We appreciate your feedback on our blog posts, and we welcome any topics you’d like us to cover in the future.
If you’d like to review your estate plan or discuss your specific situation, please don’t hesitate to reach out at cornerstone.service@oneascent.com. We’re here to help you plan with confidence.
Endnotes:
1 Using a small estate affidavit. Using a small estate affidavit | Illinois Legal Aid Online. (n.d.). https://www.illinoislegalaid.org/legal-information/using-small-estate-affidavit
2 Using a small estate affidavit. (n.d.-a). https://www.mchenrycircuitclerk.org/wp-content/uploads/2024/05/Small-Estate-Affidavit-Tri-fold-Brochure.pdf
OneAscent Financial Services, LLC (“OAFS”), d/b/a The Cornerstone Financial Group, is a registered investment adviser with the United States Securities and Exchange Commission. OAFS does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by OAFS or any unaffiliated third party. OAFS is neither an attorney nor accountant, and no portion of the presented content should be interpreted as legal, accounting, or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly