9 Essential Processes to Probate-Proof Your Estate Planning
1. Create a living trust
The way a living trust can avoid probate is by legally owning the assets that then get distributed to beneficiaries according to the terms of the trust, thereby bypassing the court-supervised probate process. To do this, you have to transfer ownership of your assets to the trust while you are still alive.
2. Utilize beneficiary designations
Beneficiary designations can help to avoid probate because assets transfer directly to the named beneficiary upon the owner’s death, which bypasses the probate process. Assets that benefit from this include brokerage accounts, retirement accounts, life insurance, trusts, transfer-on-death deeds (if applicable in your state), transfer-on-death (TOD) accounts, beneficiary designations on titles of vehicles and vessels (MV 13 Form), and payable-on-death (POD) accounts.
3. Establish joint ownership with right of survivorship
Joint ownership with right of survivorship allows jointly held property to pass directly to the surviving owner(s) without having to go through probate. Property laws differ by state, so it is essential to understand how joint ownership and survivorship work in your state.
4. Gift assets during your lifetime
One easy way to avoid probate, if you can afford it, is to give gifts to your loved ones during your lifetime. As of 2025, you can give up to $19,000 tax-free, $28,000 for a married couple.
5. Grant a life estate in your property
A life estate can be used to transfer property ownership and potentially avoid probate\; however, there are drawbacks that you want to consider. When you grant a life estate, the current owner (the “life tenant”) retains the right to live on and use the property for their lifetime, while the designated beneficiary (the “remainderman”) inherits the property automatically upon the life tenant’s death, thereby bypassing probate. However, take into account the life tenant’s ability to sell or mortgage the property could be restricted and the remainderman’s interest could be vulnerable to creditors.
6. Look into small estate provisions
Small estate provisions allow for a simplified process that may help to bypass probate. The structure of the provisions varies by state but typically involve using a small estate affidavit or simplified court procedure to transfer assets.
7. Use transfer-on-death for securities, motor vehicles, and real estate
Depending on what state you live in and their rules, the transfer-on-death is possible in specified situations where people can pass assets to loved ones bypassing probate. This can be complicated and a financial professional can help you determine the financial steps to take and what to expect with this strategy.
8. Create joint ownership for real estate and non-real estate property
Joint tenancy can be used for both real estate and other assets such as financial accounts and securities. If the owner dies, the title passes automatically to the joint owner (beneficiary). Property laws vary per state, so consider consulting a financial professional to learn more about how this option may benefit you and your estate planning strategy.
9. Schedule a meeting with your financial professional
Careful estate planning is critical to helping your loved ones save money in the event of your death. There are many nuances involved with estate planning and numerous strategies you can explore while you are alive to make the event of your passing less stressful and more financially beneficial to your loved ones. It is highly encouraged that you seek help from a financial professional who can help you determine the course of action that could work for you and your financial goals.
Important Disclosures:
Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by LPL Marketing Solutions
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Sources:
[1]How Does a Revocable Trust Avoid Probate?
[1]Designating Beneficiaries to Avoid Probate - MSU Extension | Montana State University
[1]What Are Joint Tenants With Right of Survivorship (JTWROS)?
[1]What's new — Estate and gift tax | Internal Revenue Service
[1]How to avoid probate with a life estate
[1]Small Estates: How to Avoid Probate
