Passing Your Real Estate on Successfully: Avoiding Probate

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When you want to leave a valuable asset behind for your beneficiaries, real estate makes an excellent gift. However, if you do not plan carefully, the property may have to go through probate court. Once it is in probate court, the court decides how to divide your estate and property. This means it may have to be sold and some of its value used to pay probate fees, taxes, attorney fees, and more. Even if the court follows your wishes as stated in your will, probate could mean a lengthy hassle for your heirs.

The probate process, which differs around the country, can take time to complete—possibly more than a year. To avoid probate (and its headaches) and to ensure that your property goes to your chosen beneficiaries, there are several steps you can take in advance. Here are some tools you can use for probate avoidance.

Why a Will May Not Be Enough

It is often believed that making a will is an excellent way to pass on your property. Although this tool works in many situations, it’s important to remember—especially if you have a larger estate—that a will can be contested. If it is, the settlement will be delayed, and your wishes as to which beneficiary or beneficiaries should inherit your property may go unfulfilled.

A Living Trust

One way to avoid probate on your real estate is to create a living trust—also called a revocable trust. When creating a living trust, you would normally name yourself as the trustee, and also name a successor trustee.