The probate courts oversee the administration of estates. They help ensure that a personal representative follows the will of the deceased party in many cases. Other times, they may need to follow the instructions for property distribution included in intestate succession laws.
The plans of the deceased individual largely dictate who receives property during estate administration. However, personal representatives may sometimes need to sell off or liquidate assets to repay creditors and cover tax obligations.
Keeping high-value assets out of probate court may be a priority for those concerned about estate taxes or creditor collection efforts. Direct transfers can also limit the risk of beneficiaries fighting over valuable assets.
Can a deed executed before an owner dies keep their home from becoming part of an estate?
Deeds can help bypass probate court
A deed executed before an individual passes can change how they hold their real estate before they die or can help keep the home out of probate court after they pass. Some people execute deeds to add a co-owner who is a joint tenant with rights of survivorship. That co-owner then inherits the other party’s interest in the property after their death without the home passing through probate court.
People who do not want to change ownership while they are still alive have another option. They can execute a transfer-on-death deed. This allows for ownership of their home to transfer to a specific beneficiary after their death without passing through the probate courts.
Either solution can be helpful for those who worry about disputes about their homes, creditor claims or high-value assets triggering estate taxes. Adding the right documents to an estate plan can help people protect their most valuable resources and leave a meaningful financial legacy.