Use Your Roth IRA To Avoid Probate
Roth IRA’S are not only a great way to save money, they are also a great way to leave money to your heirs without probate.
Unlike traditional IRA plans, the Roth IRA provides you a way to pass large amounts of money to your heirs, without probate upon your death. A Roth IRA has no required minimum withdrawals. You can let your money continue to grow tax free until your death, when it will be passed on to the person you have named as beneficiary.
There is a contribution limit on the money you can save, currently it is $5,000 or $6,000 if you are over the age of 50.
Passing the money in your Roth IRA account is easy and it does not cost you a thing. All you have to do is name someone to inherit whatever money is in the account at the time of your death. If you have more than one beneficiary, the money will be split equally, unless otherwise specified. You do not have to mention the Roth IRA in your will or living trust, your beneficiary form will take care of everything.
Most people choose their beneficiary to be their spouse, but your beneficiary can be anyone you choose to leave your money to.
Upon your death, all the beneficiary will need is a certified copy of the death certificate to claim the money. They will receive the funds quickly and without probate.