Probate is a legal process in which a court reviews a will, determines whether the executor is acceptable and authorizes the distribution of assets. However, probate can take months, if not years, and costs may be considerable. For these and other reasons, estate planning attorneys advise most people to remove large assets from the probate estate. A recent article from USA Today, “Haunted by inheritance nightmares? 7 tips for avoiding probate,” provides useful insights into streamlining the estate process.
In some cases, the process starts with making your estate “small.” The definition of “small” varies by state. In some states, a small estate is valued at $25,000, while in another it may be $100,000. If you die with assets below the small threshold in your state, your heirs may be able to avoid full probate.
If your net worth is more than $100,000, an experienced estate planning attorney will help determine how to best reduce your estate using the right strategies.
Assets owned in your name are subject to probate. You’ll want to explore whether ownership of the assets can be transferred. Check the beneficiary designation on any bank and investment accounts, insurance policies, savings accounts, or other accounts where a beneficiary can be named. These accounts will go directly to heirs upon your passing. They are considered non-probate assets.
If you neglect this step, any assets in your name will become part of your probate estate.
Be sure to name contingent beneficiaries in case the primary beneficiary dies. For example, you may name your spouse, followed by a child or a grandchild. Make sure to check on any beneficiary designations every few years. More than one family has gone to court because an ex-spouse has received a surprise windfall when beneficiary designations were not changed. These cases are typically ruled in favor of the person who is named on the form, regardless of what the will says or how long it’s been since you were in contact with the person. It’s an expensive mistake.
Consider using a trust. A trust is a legal document that creates a separate legal entity, allowing you to manage the assets in the trust while you are living and dictate what happens to them upon your death. The trust owns the assets, so they are not part of your probate estate. Some assets can’t be placed in a trust, such as IRAs.
The key to having a trust that works is moving assets into it to make it effective. Failing to fund the trust has undermined more than a few estate plans.
For most people, the family home is the biggest asset. There are ways to keep this important asset out of probate court. One option is to change the deed to a “transfer on death” title so it passes to a beneficiary upon your death. However, this needs to be done in conjunction with the whole estate plan. If the home transfers to one sibling, the others will have no right to the property or any proceeds upon its sale.
Houses can also be retitled and placed within a trust. An estate planning attorney should be consulted to review the overall estate, determine the best trust type and assess how it fits with the rest of the estate plan. Some families prefer to own the home in joint tenancy, where more than one person owns the property, and upon the death of one owner, the surviving owner owns the house outright. However, if one of the owners has credit problems or goes through a divorce, the home is vulnerable.
Another part of an estate plan should be to discuss your wishes with family members. If you’ve created a trust and named trustees and beneficiaries, let the trustees and beneficiaries know what their roles will be and be sure they are willing to take on these tasks. Maintain an inventory of accounts and assets to help them manage the estate after you pass.
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Reference: USA Today (Feb. 2, 2026) “Haunted by inheritance nightmares? 7 tips for avoiding probate”
