How to Avoid Probate in Texas
Probate can be a lengthy and costly process, which is why many people in Texas look for ways to avoid it. Understanding the steps involved in bypassing probate can give you peace of mind, knowing that your assets will be distributed according to your wishes without unnecessary delays.
If you’re considering ways to avoid probate, working with an experienced probate attorney can be crucial. At Tefera Law Firm, PLLC in Colleyville, Texas, we’ll outline the key strategies that may help you bypass the probate process and keep your estate in order.
What Is Probate?
Before we discuss how to avoid probate, it’s helpful to understand what probate is. Probate is the legal process by which a deceased person’s estate is administered. This process involves validating the will, paying any outstanding debts, and distributing the remaining assets to the beneficiaries.
In Texas, the probate process typically takes a few months, but it can drag on for years if the estate is contested or complicated.
The main concern for many people is that probate can be expensive and time-consuming. It also means that your personal affairs become part of the public record. For these reasons, avoiding probate is often a priority for those planning their estate.
Why Avoid Probate?
There are several reasons you might want to avoid probate in Texas:
Speed: Probate can take several months or even years, depending on the intricacy of the estate. Avoiding probate can make the process of transferring assets to your beneficiaries much quicker.
Cost: Probate can incur significant legal fees and court costs. By avoiding probate, you may be able to save money and preserve more of your estate for your beneficiaries.
Privacy: The probate process is public. That means anyone can see your will, assets, and debts. Avoiding probate helps you keep your affairs private.
Control: Probate courts will oversee how your assets are distributed, but if you avoid probate, you can retain more control over how your estate is handled.
Now that we understand the importance of avoiding probate, let’s take a look at some of the strategies you can use.
Set Up a Revocable Living Trust
One of the most effective ways to avoid probate in Texas is by establishing a revocable living trust. This type of trust allows you to transfer ownership of your assets to the trust while retaining full control over them during your lifetime.
When you pass away, the assets in the trust are distributed to your beneficiaries without going through probate.
A revocable living trust can hold all types of property, such as real estate, bank accounts, investments, and personal belongings. The trust agreement outlines how your assets should be distributed and who will manage the trust. You can modify or revoke the trust at any time during your life.
Working with a probate attorney is key when setting up a trust, as they can help you create a trust that meets your specific needs and complies with Texas law.
Benefits of a Revocable Living Trust:
Avoids probate for assets placed in the trust
Provides privacy since the trust isn’t subject to public record
Allows for easy management of your assets during your lifetime
Offers flexibility to change or revoke the trust
Transfer Assets to Joint Ownership
Another way to avoid probate in Texas is by transferring ownership of your property to joint ownership with rights of survivorship. This strategy allows the surviving owner to automatically inherit the property without the need for probate.
For example, you could add a spouse or child to the title of your home or bank accounts. If one joint owner passes away, the other automatically becomes the sole owner of the property. This can significantly reduce the need for probate in relation to these assets.
However, keep in mind that while joint ownership helps avoid probate, it does come with some risks. For instance, the surviving owner may have control over the assets, which could complicate matters if there are disagreements or conflicting interests. Consulting a probate attorney is a good idea to weigh the pros and cons of joint ownership in your situation.
Advantages of Joint Ownership:
Assets pass directly to the surviving owner without probate
Simple to set up for property like homes or bank accounts
Provides an immediate transfer of ownership after death
Name Beneficiaries for Your Accounts
Many financial accounts allow you to designate a beneficiary who will inherit the account upon your death. This includes life insurance policies, retirement accounts, and certain bank accounts. By naming beneficiaries, these assets are transferred directly to them without going through probate.
It’s important to update beneficiary designations regularly to make sure they reflect your wishes. Also, be sure that your named beneficiaries aren’t subject to conflicting claims or disputes. A probate attorney can help you review your accounts and make sure your designations are properly set up.
Accounts That Can Have Beneficiaries:
Life insurance policies
Retirement accounts (e.g., IRAs, 401(k)s)
Bank accounts with payable-on-death (POD) or transfer-on-death (TOD) designations
Investment accounts
Use a Lady Bird Deed for Real Estate
In Texas, a lady bird deed (also known as an enhanced life estate deed) is a useful tool for avoiding probate on real estate. This type of deed allows you to transfer property to your beneficiaries while retaining the right to use and control the property during your lifetime.
Upon your death, the property automatically passes to your named beneficiaries without the need for probate.
The lady bird deed offers several advantages over other methods of property transfer. Unlike joint ownership, it allows you to retain full control of the property during your lifetime. Additionally, it can help you avoid gift taxes that might apply with other types of property transfers.
Working with a probate attorney to create a lady bird deed is crucial to make sure that it’s valid and correctly executed under Texas law.
Advantages of a Lady Bird Deed:
Avoids probate for real estate
Retains full control of the property during your lifetime
Avoids gift taxes when transferring property
Use Payable-on-Death Accounts
Another strategy for avoiding probate is setting up payable-on-death (POD) accounts. A POD account allows you to name a beneficiary who will inherit the funds in the account upon your death.
The account remains in your name during your lifetime, and you maintain full control over it. However, once you pass away, the funds automatically transfer to the beneficiary without going through probate.
POD accounts are often used for bank accounts, certificates of deposit (CDs), and savings accounts. They’re simple to set up and provide an easy way to transfer assets outside of probate.
Benefits of POD Accounts:
Quick and simple transfer of funds to a beneficiary
Avoids probate for the account
Beneficiaries gain access to the funds immediately after your death
Consider Gifting Assets
Gifting assets during your lifetime is another way to avoid probate. By giving away property, money, or other assets before you pass away, you can reduce the size of your estate and avoid probate for those items. However, there are limitations and tax implications to consider when gifting assets.
For instance, the IRS allows you to gift a certain amount each year without triggering gift taxes. In 2025, the annual gift tax exclusion is $17,000 per person, meaning you can give up to $17,000 per year to an individual without incurring gift tax.
Gifting can also impact your estate planning goals. If you give away too much, it could leave you with insufficient assets for your own care. Consulting a probate attorney can help you make the most of this strategy while staying within legal limits.
Advantages of Gifting Assets:
Reduces the size of your estate and helps avoid probate
Can be a tax-efficient way to transfer assets
Provides a way to support loved ones during your lifetime
Avoiding probate requires careful planning and attention to detail. A probate attorney can help you determine the best strategies based on your specific needs and circumstances.
From setting up a revocable living trust to creating a lady bird deed, a probate attorney can guide you through the process and make sure your estate plan is set up correctly.
Contact Tefera Law Firm, PLLC Today to Get Started
Avoiding probate in Texas is possible with the right planning. We serve clients throughout Tarrant County, including Colleyville, Keller, Grapevine, Southlake, Watauga, Hurst, Euless, Bedford, North Richland Hills, Fort Worth, Arlington, and the neighboring areas, including Dallas and Denton. Call us today at Tefera Law Firm, PLLC to get started.