Probate Law
Probate is the legal process that occurs after a person (the “decedent”) dies, with or without a valid will. If the decedent dies with a valid will, then the property is distributed according to the will. If a person dies without a will, then Missouri’s probate law dictates how the decedent’s assets are distributed. Probate isn’t always required when someone dies, depending on what assets are in the estate.
Types of Estate Administration
Probate cases in Missouri are handled at the local county circuit court in the probate division. The process of administering the estate will vary depending on whether the decedent had a valid will and the type of probate administration the decedent’s estate will have to go through. In Missouri, if a decedent’s estate is small enough, the law allows you to skip probate altogether and use a simplified process. Otherwise, you’ll need to go through a formal probate process in court, either “independent” or “supervised” depending on the circumstances.
Estate Tax
Missouri law based a state estate or death tax on the Internal Revenue Service (IRS) estate tax credit. As the IRS stopped allowing state death tax credits after January 1, 2005, Missouri’s estate tax is no longer imposed. If, however, the IRS reinstates a state-based estate tax credit, than the Missouri estate tax and tax return will again be required.
How Do You Avoid Probate in Missouri?
It is possible to avoid probate in Missouri with careful planning. Your best option is to place all assets of the estate into a living trust before you die. You still maintain control with a revocable living trust, but the assets go to the named beneficiary without the need for probate. You can also avoid probate if the assets contain a named beneficiary, such as with life insurance policies or retirement accounts. You can do this with vehicles when you name a person as transfer on death to the title. Real estate works the same way with a quit claim deed, which allows the living names on the title to take ownership when someone dies.