In NH, some assets can avoid probate. This can be done without the use of a living trust, a legal arrangement granting one person (the trustee) title to property for another person (the beneficiary). These assets include:
Tenants-by-the-entirety (TBE) or joint tenants with right of survivorship (JTWROS). Full property ownership under these arrangements automatically passes to the surviving owner.
Payable-on-death (POD) bank accounts. Upon the owner’s death, the proceeds go directly to the named beneficiary and bypass probate. The beneficiary may not access the funds before the owner’s death, and they don’t need to be aware of the account prior to the owner’s death. These accounts are also known as Totten Trusts.
Transfer-on-death (TOD) securities. Securities are transferred on death if they are registered appropriately, and the beneficiary provides a certified death certificate and a signature guarantee. In NH, transfer-on-death registration is prohibited for either real estate or vehicles.
Life insurance proceeds. While these can be exempt with a named beneficiary, probate is not bypassed if the beneficiary is the estate.
Retirement plans. These also require a named beneficiary, unless the beneficiary is the estate.
These assets may or may not be creditor protected, and in the event of litigation, further steps may be necessary to shelter them. Also, it is often wise to designate a trust to be the beneficiary. This prevents waste of the asset in the event the monies are left outright to a spendthrift beneficiary.
The Presser Law Firm, P.A. in Florida focuses on asset protection.
Current Issue - April 2024