How to Avoid Probate in Texas

Probate is a legal process that entails the review of a recently deceased’s will to determine its validity. Through probate, an estate executor or personal administrator also receives official court authority to carry out the duties of settling an estate.

Probate can help avoid any potential legal problems and ensure that your assets are passed to your designated beneficiaries. However, probate can be a very time-consuming and expensive process, so many estate plans focus on reducing the need for probate or avoiding it entirely.

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Why Would You Want to Avoid Probate

How To Avoid Probate

Would I Still Have To Go Through Probate if the Deceased Had a Will

There are a few reasons why you might want to avoid probate in Texas.

The probate process is quite costly. This is especially true if you try to probate an estate that’s particularly large or complex. Court filing fees, the fees of any professionals you may involve, such as accountants and attorneys, and estate taxes on larger estates can really add up.

Probate can also be an emotionally difficult and time-consuming process. It can take many months or even years to get through probate—in Texas, the average probate period is anywhere from six months to a year. This can take a toll on you.

The main strategies to avoiding probate in Texas consist of simplifying your estate. After all, small estates valued at $75,000 or less can even skip probate entirely through a Small Estate Affidavit. Here are some key strategies for simplifying an estate:

Lady Bird Johnson Deed

A Lady Bird Deed, also known as a Lady Bird Johnson Deed, can help avoid probate in Texas. By creating this type of deed, the property owner transfers ownership of the property to the named beneficiary upon their death, while still retaining the right to use and occupy the property during their lifetime. After the owner's death, the property passes automatically to the intended beneficiary without the need for probate. This can save time and money, as well as provide peace of mind for the property owner and their loved ones.

Muniment Of Titles

A muniment of title is a document that establishes an individual's ownership of real property. A will may be probated as a muniment of title in Texas if it meets certain requirements;

• The estate must not have any debts
• The will must not have a named executor
• The court must deem that the estate does not need any further administration

Probating a will as a muniment of title can help avoid probate in Texas because it can help to establish an individual's ownership of real property, allowing the property to be distributed to its intended heirs, without the need for further administration by the court.

Joint Ownership

A jointly owned property with survivorship rights will help your estate avoid probate. In the event of the death of one owner, the title of the property passes to the remaining owner automatically and doesn’t have to go through probate.

You can designate joint ownership for a variety of assets beyond real estate: Personal property such as vehicles as well as investments and financial accounts can be jointly held.

Beneficiary Designations

You can designate beneficiaries for assets such as retirement accounts to prevent those assets from going through probate. Or you can ensure that your beneficiaries are listed on the will if you have one.

In the designation form, you name someone as the heir to an asset—such as money, property, or shares in a business. Your assets will go directly to your heirs without having to go through probate in the event of death.

Transfer-on-Death Deeds

A transfer-on-death deed is a designation in which the current owner of a property or personal asset such as a vehicle designates one or more persons as beneficiaries.

The beneficiary can be an organization, a charity, or an individual. And upon the death of the current owner, the beneficiary automatically becomes the property's new owner. This eliminates the need for that asset to be probated.

Living Trusts

A living trust is an independent legal entity created by a trustor, who places their assets in the trust. The assets are then managed by a trustee. The trustor can determine how the assets will be managed during their lifetime and designates beneficiaries who will receive the asset once the trustor passes.

The main benefit of the living trust is that the assets no longer form part of your estate, thereby minimizing the need for probate or even being able to skip it altogether.

Payable-on-Death Designations for Bank Accounts

Payable-on-death refers to an arrangement that a person makes with a financial institution to designate beneficiaries to their bank accounts or certificates of deposit.

Sometimes, the bank may also designate another financial institution as a beneficiary on behalf of the deceased person. Payable-on-death designations help prevent probate, since the assets in the account go directly to the designated beneficiary.

Most wills will probably go through probate, but there are circumstances where a will doesn’t need to be probated. Some assets and properties can circumvent probate, but in most cases, a will still needs to be properly filed and recorded with the appropriate probate court in the county where the deceased lived at the time of their death.

It’s essential to understand the different types of rights and responsibilities that may apply when probate proceedings are undertaken. You can contact us at ClearEstate for a free consultation to help you with your estate planning needs.