There are lots of reasons why families plan their estates. One of the primary goals of estate planning is to preserve assets, either to pass on to future generations or to donate to charity.
Eventually, assets in an estate go to the beneficiaries listed in a will. However, a will must go through probate before the executor can distribute estate assets.
What is a Probate?
Probate is a public, legal process where a court validates a will and approves the executor’s ability to distribute assets.
Unfortunately, probate often results in unnecessary costs and delays. The court must appoint an executor, who settles all of the deceased’s debts before any estate assets are distributed. Probate proceedings can take months, and in some cases, even longer. Beneficiaries and heirs may experience a significant delay in receiving any assets left to them. Estate assets can also be depleted during probate.
Avoiding probate can help you and your family in several ways:
- Privacy. You can keep sensitive financial matters private by avoiding probate.
- Costs. Avoiding probate keeps money in your pocket instead of spending them on filing fees, attorney’s fees, and other expenses that come with probate.
- Time. The courts will certainly move faster if there are few assets and distribute and debts to handle.
How to Avoid Probate in Houston
There are steps you can take to reduce the number of assets that have to go through probate:
Sell Assets When You Are Alive
By selling assets before proceedings, you can reduce the number of assets that need to be probated. However, whether you can sell for example, a house, depends on how it is titled. In a joint tenancy or as tenants in common with a surviving spouse, the surviving owner gets full ownership and gets to sell the house before probate.
Time is of the essence when selling to avoid probate. So if you want to sell your house fast in Houston, selling to a cash home buyer is the best option instead of going the traditional route.
Retitling Assets
Assets owned by more than one person don’t have to go through probate. The asset will automatically transfer to the joint owner. This applies to both financial accounts and real estate.
However, this approach can be risky. The asset may be subject to claims against joint account holders. You might also inadvertently disqualify yourself from public benefits in the future.
Designate Beneficiaries
IRAs, 401Ks, and other bank and brokerage accounts let account holders name a beneficiary who gets the assets upon the account holder’s death. By doing so, these assets are removed from probate.
Remember, though, that if a will contradicts beneficiary designations, the beneficiary designation wins. This means improper beneficiary designations might defeat your will’s purpose.
Create a Revocable Living Trust
Probate proceedings can be long, expensive, and confusing. If you want to save your family the time and the money to go through probate, it’s best to start handling your affairs today. With these probate avoidance strategies, you can start planning for the best way for your family’s future.
Learn More About Selling for Cash
Looking for a reliable cash homebuyer in Houston, TX? Ohana Legacy is here to help.
We are local homebuyers serious about selling your home. Get in touch with us, and we’ll offer you a fair cash offer that you can choose to accept on your chosen schedule. In our process, you don’t have to wait for us to get pre-qualified by a bank to get a mortgage loan, and you don’t waste time listing the property on listing platforms. Our ability to move so quickly on the purchase of your house is because we use our own cash, which means the sale is more secure.
Ready to get started? Call us today at (832) 402-6181 to get a fair cash offer.