How to Avoid Probate in Texas?

Posted by Alan Finkel on October 7th, 2022

Probate is a legal process that allows the state to gain control over a person’s estate upon their death. The purpose of probate is to ensure that the deceased’s assets are identified, managed, used to pay off outstanding debt and taxes, and lawfully distributed among beneficiaries. If the deceased left a will, the matters of inheritance are resolved accordingly; if not, then probate is carried out with respect to intestacy law.

While the protocol seems reasonable, the drawback is that the imposed legal proceedings of probate can be rather protracted, cumbersome, and expensive. Not to mention, you cannot control the fate of your assets if you did not create a last will and testament while you were alive, healthy, and mentally fit. Probate will not transfer any assets to a close friend, foster child, or charity organization, unless it was clearly stated in the certified will document. Fortunately, there are several ways to protect your estate from probate in TX.

Gift all property during your lifetime

One way to avoid probate is to get rid of your property while you are still alive. While this method sounds straightforward, it is seldom practical and desirable. When estate is no longer under your ownership, you lose all authority over it. For instance, your successor can sell assets during your lifetime without attaining your consent or approval.  

Joint Tenancy Property

Sharing ownership of your property with a loved one is another way to skip probate. In Woodlands, you can open a joint bank/investment account with your spouse, or add their name to the deed for real estate. The joint asset will automatically transfer to your spouse upon your death, by ‘rights of survivorship’ or ‘tenancy by the entirety’. You can also add a child’s name to a property deed, though it is not recommended. Bear in mind that the survivor can do whatever they want with this property.  

Beneficiary Designated Accounts

You can designate beneficiaries to your current/checking accounts, savings/retirement accounts, insurance policies, and other certificates of deposit. Beneficiary designated accounts are payable on death, thus you maintain possession until then. The nominated beneficiaries will receive the money held in these accounts without the need for probate.

Revocable Living Trusts

If you have a relatively large estate, creating a revocable living trust can help manage it better during your life and after, whilst preventing probate. By transferring your assets to a trust, you can conceal them from the public eye; this safeguards your assets from notorious creditors and prevents anyone from contesting the matters of inheritance. You are the creator and trustee of the living trust you create, i.e. you are in charge of all related financial matters. You can appoint a successor trustee to act on your behalf, in case you die or become incapacitated.

Life Estate Deeds

TX is among the few states that allow individuals to create enhanced Life Estate Deeds, also known as ‘Lady Bird Deeds’. The Lady Bird deed allows a person to preserve valuable assets and qualify for Medicaid benefits at the same time. Upon death, all assets placed in the deed are transferred to beneficiaries without going through probate. The estate cannot confiscate these assets or use them to recover the value of Medicaid benefits utilized by the decedent.

Consult an Expert

Every individual’s estate is unique, which is why you cannot blindly implement any of the mentioned tactics for preventing probate. Contact Texas Estate Planning Attorney today to get started on an estate plan that suits your situation, needs, and preferences. A proper and elaborate estate plan is in the best interests of your loved ones.

Author Bio

Texas Estate Planning Attorney have successfully handled thousands of cases as well as across the United States, in both state and federal courts. We will tenaciously fight for you from start to finish and do everything we can to help you reach the most favorable outcome possible.