Probate refers to the legal process that takes place after someone dies. During probate, a court verifies the will and oversees the distribution of property to the rightful heirs. This process often takes time and can cost a significant amount. To make things easier for their families, many people take steps to transfer assets in ways that avoid probate.
What does Texas law say about probate?
Texas law outlines the rules for transferring property after death in the Texas Estates Code. The probate process in Texas typically includes validating the will, listing the deceased person’s assets, settling debts, and distributing the remaining property to named beneficiaries.
You can avoid probate by using several legal tools that transfer ownership directly to others.
Joint ownership with right of survivorship
When multiple people co-own property and include a “right of survivorship” clause, the surviving owner automatically receives full ownership after the other owner dies. People commonly use this option for real estate and joint bank accounts.
Transfer on death or payable on death designations
For assets like bank accounts and investment accounts, you can name a beneficiary to receive them directly when you pass away. The beneficiary typically provides a death certificate and proof of identity to access the funds.
Life insurance
When someone dies, the life insurance company pays the proceeds directly to the named beneficiary. This money does not go through probate.
Living trusts
You can create a trust during your lifetime and transfer assets into it. After your death, the trustee distributes the trust assets to the people you named, without needing to go through probate.
Small estate affidavit
Texas offers a simplified process for small estates. As of September 1, 2023, if the estate’s value (not including a homestead and exempt personal property) totals $75,000 or less, the family can use a Small Estate Affidavit to transfer the assets.
By planning ahead, you can make it much easier for your loved ones to receive your property. Taking action now helps avoid delays, legal fees, and unnecessary court involvement later.
