Probate can add court filings, delays and public records to the process of settling an estate. If you live in Colleyville, you may have options for transferring certain assets outside the probate process. Careful planning could help your family spend less time dealing with court procedures after your death.
Several estate planning strategies may help keep certain assets outside probate. Each option works differently, so the right approach may depend on the types of property you own and your overall estate plan.
1. Transfer real estate with a transfer on death deed
A transfer on death deed (TODD) may let you name someone to receive your real estate after you die. You generally keep control of the property during your lifetime while the named beneficiary receives the property after your death.
Texas Estates Code requires a TODD to meet specific deed requirements and to be recorded with the county clerk before the property owner dies. Meeting these requirements could help ensure that the deed works as intended.
2. Share property with survivorship rights
Joint ownership with a right of survivorship may allow your share of certain property to pass directly to another joint owner after your death. This option may work for some spouses or other co-owners, depending on the property and your estate plan.
Texas law generally requires a written agreement for this arrangement. Simply owning property together may not create survivorship rights. Reviewing the ownership documents could help clarify how the property may transfer after your death.
3. Update your beneficiary designations
Bank accounts, retirement accounts and insurance policies may allow you to name beneficiaries who receive the assets after your death. Payable on death and transfer on death designations may allow certain assets to transfer outside a traditional will.
You may want to review these designations after major life changes, such as marriage, divorce, the birth of a child or the death of a beneficiary. An outdated designation could direct an asset to someone you no longer intend to name.
4. Consider a revocable living trust
A revocable living trust may let you place certain assets into a trust during your lifetime and name the people who should receive them after your death. You generally retain the ability to change or revoke the trust while you are alive.
A trust can involve more planning than simply naming beneficiaries. You also may need to transfer eligible assets into the trust for the plan to work as intended. As a result, the trust documents and the assets connected to them may need to work together.
Keep your estate plan coordinated
Avoiding probate does not necessarily mean every asset should use the same strategy. Your home, financial accounts and other property may each require a different approach. A coordinated estate plan could help reduce conflicts between your will, beneficiary designations and other transfer documents.
Reviewing how each asset fits into your overall plan may help you identify gaps before they create problems for your family.