How to Avoid Probate: 6 Common Ways (and When You Can't)
BestParalegals is not a law firm and does not provide legal advice. Information here is general and may not apply to your situation or state. For legal advice, consult a licensed attorney.
Probate is the court process for settling an estate. It can take time and cost money, so many people arrange for assets to pass outside it. Rules vary by state; this is general information, not legal advice.
Six common ways
| Tool | How it works | Where to set it up |
|---|---|---|
| Beneficiary designations | Retirement accounts and life insurance go to the named beneficiary | With the plan or insurer |
| Payable-on-death (POD) bank accounts | Funds pass to the named beneficiary at death | Your bank; the FDIC explains how these accounts are insured |
| Transfer-on-death (TOD) registration | Brokerage accounts and securities pass to the named beneficiary; see Investor.gov | |
| Joint ownership with right of survivorship | The surviving owner takes the property | On the deed or account title |
| Transfer-on-death deed | Real estate passes to a named beneficiary in states that allow it | Recorded with the county, if your state permits |
| Revocable living trust | Assets titled in the trust pass under its terms without probate | Usually drafted with a lawyer |
Small-estate procedures
Many states let heirs collect small estates with an affidavit or a simplified process instead of full probate. The dollar limits and rules are set by each state; check your state court's self-help site.
When probate may still happen
- Assets left in your sole name with no beneficiary.
- Beneficiaries who died before you, with no backup named.
- Disputes, or debts that need court supervision.
Mistakes to avoid
- Forgetting to retitle assets into a trust after signing it.
- Outdated beneficiary forms; they override your will for those accounts.
- Adding a joint owner without understanding the gift-tax, creditor and control risks.
Next steps: use our estate planning checklist, read making a will, or see how an estate planning paralegal can help with paperwork.
Frequently asked questions
What are common ways to avoid probate?
Beneficiary designations: Retirement accounts and life insurance go to the named beneficiary; With the plan or insurer. Payable-on-death (POD) bank accounts: Funds pass to the named beneficiary at death; Your bank; the FDIC explains how these accounts are insured.
What is a small-estate procedure?
Many states let heirs collect small estates with an affidavit or a simplified process instead of full probate. The dollar limits and rules are set by each state; check your state court's self-help site.
When does probate still happen?
Assets left in your sole name with no beneficiary; Beneficiaries who died before you, with no backup named; Disputes, or debts that need court supervision.
What mistakes should I avoid when planning to skip probate?
Forgetting to retitle assets into a trust after signing it; Outdated beneficiary forms; they override your will for those accounts; Adding a joint owner without understanding the gift-tax, creditor and control risks.
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