How to Avoid Probate

Learn the most popular ways of avoiding probate.

Why Avoid Probate?

Most of us have heard that it's wise to avoid probate court, but we don't necessarily know why. In a nutshell, there are two big problems with probate: It ties up property for months, sometimes even a year, and it's expensive. Attorney and court fees can take up to 5% of an estate's value.

What Probate Avoidance Can't Change

Avoiding probate has much to recommend it. But it's not a magic bullet that solves every financial problem that might surface after your death. To clear up some common misconceptions, here are a few things that probate-avoidance has absolutely no effect on. Taxes Avoiding probate doesn't mean avoiding

Comparing Probate-Avoidance Methods

Given the plentiful drawbacks of probate, it's not surprising that people have sought ways around it.

Adding a POD Designation to a Joint Account

POD accounts, which let you name someone to inherit the funds in a bank account at your death--without probate--can be very useful for couples who have joint bank accounts. Accounts With a Right of Survivorship Most joint bank accounts come with what's called the "right of survivorship," meaning that

Avoiding Probate: The Small Estate

If your estate is relatively small, you may not have to worry about probate at all. Almost every state now offers shortcuts through probate -- or a way around it completely -- for "small estates." Often, you can claim property by using affidavits and skip probate entirely. Or take advantage of many states' quick, simple procedures for small estates.

Avoiding Probate with Transfer-on-Death Accounts and Registrations

Avoiding probate doesn't always have to be complicated. You can take simple steps to ensure that certain types of property will pass to your heirs without probate court proceedings. One of the easiest methods is to hold your bank accounts, retirement accounts, security registrations, and vehicle registrations in transfer-on-death form. When you die, the beneficiaries you have named will inherit the property without going through probate.

Avoiding Probate with Joint Ownership

Several forms of joint ownership provide a simple and easy means of avoiding probate when the first owner dies. In fact, many couples conclude that holding title to their major assets as joint owners is all the estate planning they want to engage in, at least while they are younger. To avoid probate by taking title as joint owners with someone else, you state on the paper that shows your ownership (a real estate deed, for example) how you want to hold title. Usually, no additional documents are needed.

Avoiding Probate With Joint Tenancy

Joint tenancy is unquestionably the most popular probate-avoidance device around. And why not? Property owned in joint tenancy automatically passes, without probate, to the surviving owner(s) when one owner dies. Setting up a joint tenancy is easy, and it doesn't cost a penny. Joint tenancy often works

Avoiding Probate in Your State

Select your state to learn about your state's laws.

Avoiding Probate in New York

How to save your family time, money, and hassle.

Avoiding Probate in Texas

Probate court proceedings (during which a deceased person's assets are transferred to the people who inherit them) can be long, costly, and confusing.

Avoiding Probate in California

Probate court proceedings (during which a deceased person's assets are transferred to the people who inherit them) can be long, costly, and confusing.

Avoiding Probate in Florida

Probate court proceedings (during which a deceased person's assets are transferred to the people who inherit them) can be long, costly, and confusing.

States that Allow Transfer-On-Death Deeds for Real Estate

For most homeowners, keeping a house out of probate is their biggest probate-avoidance wish—and challenge. A living trust works well, but not everyone wants to go to the expense and trouble of creating one. Joint tenancy isn't always the best option, either. Here's good news: A growing number of states

If I name beneficiaries for my bank accounts, should I include them in my will?

If I fill out a beneficiary form for my stock, IRA, or bank account (to avoid probate), should I name the beneficiaries in my will, too? Or will that only muddy the waters? Also, does naming beneficiaries for these accounts help with the overall estate taxes if they are not listed in the will?

How do I set up a payable-on-death account?

How do I set up payable-on-death accounts for my bank accounts? If I establish pay-on-death for my accounts and I die, can the person I have designated on the account get access to my money right away, or is the money frozen?

How the New Owner Claims Transfer-on-Death Real Estate

Someone who inherits real estate that's been left through a transfer-on-death (TOD) deed should have an easy time transferring ownership after the original owner dies.  

How to Prepare a Transfer-on-Death Deed

If you want to use a transfer-on-death deed to leave real estate, you must prepare a deed that meets your state's requirements.

Naming a TOD Beneficiary for Your Car

Given the maintenance requirements and rapid depreciation of cars and other vehicles, it makes no sense to have them sitting around for months or years while probate grinds on, before they can be transferred to their new owners. That’s why, if your state allows it, it’s a good idea to name a transfer-on-death

Payable-on-Death (POD) Accounts: The Basics

Payable-on-death bank accounts offer an easy ways to keep money—even large sums of it—out of probate. All you need to do is properly notify your bank of whom you want to inherit the money in the account or certificate of deposit. The bank and the beneficiary you name will do the rest, bypassing probate

Adding a POD Designation to a Joint Account

POD accounts, which let you name someone to inherit the funds in a bank account at your death--without probate--can be very useful for couples who have joint bank accounts. Accounts With a Right of Survivorship Most joint bank accounts come with what's called the "right of survivorship," meaning that

If I name beneficiaries for my bank accounts, should I include them in my will?

If I fill out a beneficiary form for my stock, IRA, or bank account (to avoid probate), should I name the beneficiaries in my will, too? Or will that only muddy the waters? Also, does naming beneficiaries for these accounts help with the overall estate taxes if they are not listed in the will?

Estate Planning: IRAs and 401(k) Accounts

Millions of employees and small business owners are now in charge of their own retirement plans. They are setting up and keeping an eye on their Individual Retirement Accounts (IRAs) or Keoghs, or contributing to 401(k) plans (or 403(b) plans, for employees of nonprofit organizations or public schools)

Using Roth IRAs to Avoid Probate

Roth IRAs are tax-friendly ways to save for retirement. The big selling point is that when you're ready to withdraw money from the account, qualified distributions are not taxed. Roth IRAs can also provide a great way to leave money to your heirs without probate. Because a Roth IRA has no required minimum withdrawals, you can let the account keep accumulating income, tax-free, until your death, when it will pass to the person you've named.

Required Distributions From Retirement Accounts

If you save and invest wisely, you can leave a substantial amount in an individual retirement account—but eventually you, or your beneficiaries, will have to start taking money out.

Avoiding Probate When You Have a Blended Family

Esther and Mark met when they were both convinced that they would spend the rest of their lives alone. Esther had divorced after a long marriage; Mark was a widower. But their friendship grew until they realized it wasn't just friendship, it was love. They were married soon after and moved into Esther's

Avoiding Probate: A Widow in Her 70s

Now's the time to take steps to save your family the hassle of probate.

Avoiding Probate: A Retired Couple of Modest Means

Taking some simple steps to avoid probate will make things easier for your family.

Avoiding Probate: A Comfortable Couple in Their 60s

For many couples, only some simple probate-avoidance techniques are necessary at this stage of life.

Avoiding Probate: A Single Dad in Midlife

If you're a healthy 50-year-old, you probably don't need a lot of planning to avoid probate.