3 Ways to Transfer Assets Outside of Probate

 Posted on October 12, 2023 in Estate Planning

While comprehensive estate planning can achieve several important goals, one of the most important is ensuring that your assets go where you want them to after you pass away. Additionally, a well-crafted estate plan will transfer those assets in the most efficient way possible, saving your estate and your beneficiaries time and money.

When you pass away in Texas with or without a will, your assets will need to go through a process called probate, where a court oversees the way it is handled. In many cases, this process is expensive and time-consuming, often involving attorneys, appraisers, accountants, and court fees. Fortunately, an experienced Flower Mound estate planning lawyer can often find ways to transfer your assets outside of probate.

Here are three of the most common ways to transfer your assets without putting them through probate. For more information, contact our office today.

A Living Trust

A living trust is a trust that you create while you are alive. Importantly, you can act as the trustee of your living trust, so you can still enjoy the benefits of the assets you place in the trust. For example, you could place your home into your living trust and continue to live in it as long as you want. Importantly, any assets in a trust pass directly to trust beneficiaries without having to go through probate.

Beneficiary Designations on Accounts

Many assets like life insurance policies, retirement accounts, investment accounts, and retirement accounts allow you to designate a beneficiary. When you do so, that account will transfer to the named beneficiary when you pass away without having to go through the probate process.

Joint Ownership of Assets

Holding property or assets jointly with rights of survivorship means that when one owner passes away, the property automatically transfers to the surviving owner or owners. This is common for real estate and bank accounts. Be cautious when using joint ownership, as it can have unintended consequences, and it is essential to consider the potential tax implications.

Estate Planning Should Not Be a DIY Project

If you are considering trying to avoid probate, it is highly advisable to work with an experienced attorney. Failing to create estate planning documents in compliance with the relevant laws can result in disastrous consequences for your estate and your family. For example, if your trust fails, it is possible that your assets would be distributed in accordance with Texas’s laws of intestate succession, which may or may not reflect your wishes. The best way to ensure that your wishes are respected, and your assets are protected is to work with an experienced estate planning lawyer.

Call Us Today to Schedule a Consultation with a Flower Mound, TX Estate Planning Lawyer

If you have assets that you want to pass on to future generations, it is in everyone’s best interest to avoid probate as much as possible. At Colbert Law Group PLLC, we provide personalized counsel and guidance to every client we work with and are dedicated to finding solutions that achieve your goals. To schedule an evaluation with a Denton County, TX estate planning lawyer, call our office at 972-724-3338 today.