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When someone passes away, the transfer of assets usually go through the probate process before any beneficiaries can take ownership of them; however, there are several exceptions to this rule under probate law. For example, life insurance payouts, Social Security benefits, and assets that had been placed in a living trust do not have to pass through probate. Also, you may designate individual(s) to receive proceeds from bank accounts if you have pre-designated them as a “payable on death”, (POD)., beneficiaries.   If you recently lost a loved one and are not sure how to access assets outside of probate, turn to The Law Offices of Charley Johnson in Centerville, TX, for quality legal guidance.

Life Insurance Payouts

probate lawLife insurance policies are not considered assets in the traditional sense. Rather, they are a financial arrangement between an individual and the insurance provider. As a result, the funds do not have to pass through the probate process upon the policyholder’s death. If you recently lost a loved one who had a life insurance policy that named you as the beneficiary, you need to go through the provider directly to access the payout. Every insurance company has its own procedures for releasing funds, but you can expect to need a certified copy of the death certificate to file your claim.

Social Security Benefits

Social Security benefits are also exempt from the probate process under probate law. If your loved one had enough work credits upon their passing, you might be eligible for a one-time death benefit in addition to any survivors’ benefits. To claim either, you must visit your local Social Security office and provide certain documentation to prove your relationship with the deceased.

In general, dependent children and surviving spouses are eligible for survivors’ benefits. You can access these benefits by starting the application online, but, at some point, you will need to schedule an appointment at your local Social Security office.

Payable on Death (POD) Accounts

Payable on Death designated bank accounts, savings accounts, and similar deposit accounts, do no have to go through the probate process for distribution of the assets Typically, the designated  POD individual provides the bank or financial institution with a Certified Copy of the Death Certificate and proof that they are the individual named as the POD and the financial institution will release the funds to that person.

Even though life insurance payouts,  Social Security benefits, and Payable on Death accounts do not have to go through the probate process, an estate planning attorney can help you secure either following the death of a loved one. You have enough to worry about when grieving the loss of a family member; let a seasoned attorney from The Law Offices of Charley Johnson complete and file all of the paperwork for you. You can learn more about the firm’s broad range of practice areas, including family law and real estate transactions, by visiting their website. To schedule an initial consultation with a probate law attorney in Centerville, call (903) 536-2185.   Estate planning is essential to provide you peace of mind and to be sure your assets will go to the individuals that you intend them to go to.  

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