Using a CD to bypass probate

On Behalf of | May 27, 2022 | Probate

The owner of a will or estate in Georgia does not have to go through the probate court. It is generally a complicated process that could take years to complete. Having a certificate of deposit does not make it any harder to avoid probate, and its owner can avoid having his or her inheritors step into a courtroom.

Ways to bypass probate

Having a living trust is the most common method of avoiding probate court. In addition, joint ownership allows one deceased spouse to pass on his or her belongings to the surviving spouse and children without going through probate. A transfer-on-death deed allows the automatic transfer of property to a beneficiary after the property owner dies.

A CD is a deposit of money in a bank, credit union or other financial institution. This deposit has a fixed term and interest rate that allows the amount to increase until it’s withdrawn. When its owner dies, the CD is inherited through a joint account, by naming the beneficiary in a will or through probate. Having the CD go through probate is not necessary for every inheritance.

Avoiding this step

The administration of wills and probate often involves going through the court but not always. Avoiding the probate process is mostly the choice of the estate owner. Distributing the assets in your will through probate could take several years to complete.

Having a certificate of deposit is similar to owning a savings account with accumulated interest. This money is a preferred method of inheritance that comes with few hassles. A CD allows you to bypass the probate process after you die and leave your funds to someone else.