What is a well-known strategy to avoid probate fees when an individual passes away?

Naming a beneficiary other than the estate is a recognized strategy to avoid probate fees when an individual passes away. When you designate a beneficiary on accounts such as life insurance policies or registered investment accounts, those assets do not form part of the deceased's estate. As a result, they can be transferred directly to the named beneficiary, bypassing the probate process entirely. This not only expedites the transfer of assets but also helps in reducing the overall costs associated with probate, which can include various fees and taxes.

Choosing this option is beneficial because it ensures that valuable time and resources are conserved at a time of loss for the surviving family members, allowing them to receive the assets directly without having to wait for the estate to go through the probate process.

Other options presented do not efficiently achieve the same benefit. For instance, naming an estate as a beneficiary would result in the asset going through probate, thus incurring fees. Including assets without beneficiaries means those assets will also enter probate, leading to additional costs. Finally, while transferring assets to heirs before death can avoid probate, it may have other implications, such as tax consequences and loss of control over those assets during the individual's lifetime.