Avoiding the Probate Process

In Texas, as in many states, probate can be a time-consuming, public, and potentially expensive process for distributing a deceased person’s assets. To help avoid probate, individuals often use various legal strategies to transfer assets outside of the probate process. Below are some common probate avoidance strategies that can be utilized in Texas:

Avoiding the Probate Process

While assets in an estate are subject to probate, there are steps to take that can reduce the assets that must go through probate:

Retitling Assets: Assets owned by more than one person are not required to go through probate. Instead, the asset will automatically transfer to the joint owner. This can apply to both financial accounts as well as real estate. Retitling assets is one of the easiest ways to avoid probate. However, there are risks with this approach. For example, the assets may be subject to claims against the joint account holder. You may also inadvertently disqualify you or the joint owner of future public benefits. Talk to an estate planning attorney before retitling any assets.

Beneficiary Designations: Many retirement accounts (e.g., IRAs, 401(k)s) and life insurance policies allow you to name a beneficiary. Upon your death, the assets pass directly to the beneficiary without going through probate.

Revocable Living Trusts: A living trust is a legal entity where a person (the grantor) transfers their assets during their lifetime. The grantor can serve as the trustee, or appoint someone else, and can make changes to the trust as needed. After death, assets in the trust pass directly to beneficiaries, bypassing probate.