In most cases, real estate has to go through the probate process after the owner passes away. That can be avoided. There is a good way and a bad way to do so.
Many Americans could avoid having their estates go through probate, if they did not own their homes. For many people, their home is their most valuable asset. Without the home, their estate would be small enough to avoid probate.
In most places, all real estate must go through probate after the owners pass away. Otherwise, the deed will not be properly changed and recorded. Some people seek to avoid this problem by adding someone else's name to their deed before they pass away. This is usually a child or maybe a grandchild, but it is almost always a bad idea.
The Daily Republic discussed this matter in "All Things Real Estate: Living trust best way to pass house to children."
Among other problems, adding someone's name to your real estate deed makes it available to that person’s creditors. That sometimes does not become a problem. However, when it does, it is normally a big one.
A much better way to avoid having real estate go through probate, is to create a revocable living trust. The real estate can be transferred to the trust and will not have to go through probate, after the owner passes away.
If you would like to create a trust for your home, contact an estate planning attorney about it and other probate avoidance ideas.
Reference: Daily Republic (March 3, 2018) "All Things Real Estate: Living trust best way to pass house to children."
Suggested Key Words: Estate Planning, Probate, Trust