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Here in Savannah, we cherish our history, but when it comes to estate planning, it’s essential to look to the future. At Smith Barid, LLC, we often find that even longtime Savannah residents aren’t quite sure how their assets will be handled after they’re gone. Let’s get back to basics and explore how assets and probate law work in estate planning.

What Are Assets?

Simply put, assets are everything you own that has value. This includes:

Some assets are more obvious than others. That antique sideboard passed down through generations? That’s an asset. The digital currency you’ve invested in? That’s an asset too.

What is Probate?

Probate is the legal process of administering a person’s estate after they die. In Georgia, this process is overseen by the Probate Court. The purpose of probate is to:

  1. Validate the will (if there is one)
  2. Identify and inventory the deceased’s assets
  3. Pay off any debts and taxes
  4. Distribute the remaining assets to heirs

Not all assets go through probate, though. This brings us to an important distinction.

Probate vs. Non-Probate Assets

Probate Assets are those that go through the probate process. These typically include:

Non-Probate Assets bypass the probate process and go directly to beneficiaries. These often include:

Why Does This Matter?

Understanding the difference between probate and non-probate assets is crucial for effective estate planning. Here’s why:

  1. Time: Probate can be time-consuming, often taking months or even years in Georgia.
  2. Cost: Probate involves court fees and potentially attorney fees, which can reduce the estate’s value.
  3. Privacy: Probate proceedings are public record, while transfers of non-probate assets are typically private.
  4. Control: With proper planning, you can exercise more control over how and when your assets are distributed.

Estate Planning Strategies

Knowing how assets and probate work, you can use various strategies to manage your estate effectively:

  1. Create a Will: This ensures your probate assets are distributed according to your wishes.
  2. Use Beneficiary Designations: For assets like life insurance and retirement accounts, keep your beneficiary designations up-to-date.
  3. Consider a Living Trust: Assets in a living trust bypass probate, potentially saving time and money.
  4. Joint Ownership: For married couples in Savannah, owning property jointly with right of survivorship can be an effective way to transfer assets outside of probate.
  5. Gifting: You might choose to gift assets during your lifetime to reduce your probate estate.

The Savannah Perspective

In Savannah, we often deal with unique assets that require special consideration. Maybe you own a historic home downtown, have a family business that’s been operating for generations, or possess valuable antiques or artwork. These assets might require specialized appraisals or have specific tax implications.

Moreover, Georgia law has its own quirks when it comes to probate and estate planning. For example, Georgia allows for “year’s support” for surviving spouses and minor children, which can significantly impact how assets are distributed.

At Smith Barid, LLC, we understand the nuances of Georgia probate law and how it applies to Savannah’s unique situations. We can help you create an estate plan that protects your assets, minimizes probate, and ensures your wishes are carried out.

Ready to get your estate plan in order or review an existing one? Give us a call at 912-352-3999 or click here to schedule an initial discovery meeting. Let’s work together to create an estate plan that preserves your legacy and provides for your loved ones, right here in the heart of Savannah.

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