Probate proceedings help to ensure compliance with the law and estate planning instruments. They give creditors and heirs or beneficiaries an opportunity to express concerns about estate administration or the legitimacy of documents.
However, probate proceedings can consume estate resources. The months required to complete the probate process can delay the transfer of ownership from the estate to the intended beneficiaries. In many cases, testators make plans to keep certain assets out of probate court. Such efforts often focus on the largest assets they own, such as their real estate holdings.
How can people transfer their homes and other real property without involving the probate courts?
By using deeds
There are two different strategies that can use deeds to keep real property out of probate court. The first strategy involves executing a deed to take on a co-owner and extend them the right of survivorship. They can then inherit the other owner’s interest in the property automatically after their death. Alternatively, people can also execute transfer-on-death deeds that an intended beneficiary can record after their passing.
By using a trust
People may choose to transfer ownership of their homes to a trust in preparation for retirement. Doing so can protect the home from creditor claims and Medicaid estate recovery efforts. Holding the title in a trust also allows new occupants to move in before the completion of the probate process. Depending on how someone holds title and other details about their circumstances, there may be other solutions available as well.
Discussing estate planning priorities with an attorney can help people preserve their assets and minimize estate administration complications. With proper planning, real property does not necessarily need to pass through the probate courts.