Probate is expensive and slow. Here are six widely used strategies to keep assets out of probate court.
Probate can take 6 months to several years, costs thousands of dollars in attorney and court fees, and becomes a matter of public record. For these reasons, many people arrange their affairs to pass assets outside of probate. Here are the six most common approaches. This is for general educational purposes only — consult an estate planning attorney to determine what's right for your situation.
The most comprehensive probate avoidance tool. You create a trust, transfer your assets into it during your lifetime, and name beneficiaries. When you die, the successor trustee distributes assets according to the trust terms — no court involvement. The "revocable" part means you can change or dissolve the trust at any time while alive. The main downside is the upfront cost of creating the trust and the effort of retitling assets.
Life insurance policies, retirement accounts (401(k)s, IRAs), and some bank accounts allow you to name beneficiaries directly. When you die, these assets pass directly to the named beneficiaries without going through probate. This is simple and free — but only works for accounts that support beneficiary designations.
Most banks and brokerages allow you to add a POD or TOD designation to checking, savings, and investment accounts. The account functions normally during your lifetime, and upon death transfers directly to the named person. No probate required.
Property held in joint tenancy with right of survivorship automatically passes to the surviving owner when one owner dies — no probate needed. This is common for married couples. However, adding a joint owner to property has gift tax implications and gives that person immediate ownership rights, so it should be done carefully.
About 30 states allow transfer-on-death deeds for real estate. You record a deed that names a beneficiary, but the deed doesn't take effect until your death. You retain full control of the property during your lifetime and can revoke or change the beneficiary at any time. Not available in all states.
Most states offer simplified procedures for smaller estates — either a small estate affidavit (no court appearance required) or a simplified probate process. The threshold varies widely by state, ranging from $25,000 to over $150,000. This doesn't avoid probate entirely, but dramatically simplifies and speeds up the process.
If the estate you're involved with is already in probate, these strategies are for future planning — not the current situation. For immediate relief while probate is ongoing, an inheritance advance can give you access to funds now.
Disclaimer: This page is for general informational purposes only and does not constitute legal, financial, or tax advice. Probate laws, timelines, and costs vary significantly by state and by individual circumstances. We strongly encourage you to consult with a qualified attorney or financial advisor for guidance specific to your situation. First Heritage Funding is not a law firm and does not provide legal services.
A revocable living trust is generally the most thorough method — it covers all types of assets and provides the most flexibility. However, a combination of methods (trust for major assets, beneficiary designations for accounts, TOD deeds for real estate) is often the most practical approach. An estate planning attorney can recommend the right strategy for your situation.
Usually, yes. Probate costs typically range from 3-8% of the estate value, including attorney fees, court costs, and executor compensation. A living trust costs more upfront to create but eliminates these ongoing costs. For larger estates, the savings can be substantial.
No. A will must be validated through probate. A will tells the court how to distribute your assets, but it doesn't avoid the court process. Only the strategies listed above — trusts, beneficiary designations, joint ownership, etc. — actually bypass probate.
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