Avoiding probate costs, which typically range between 4% and 7% of your California estate’s value, should be a top priority when creating an estate plan. A California real estate attorney can help streamline this process, ensuring smoother and less expensive estate transfers. Below are some key strategies that can help avoid probate and protect your assets.
Use Transfer-on-Death Deeds
Transfer-on-Death (TOD) deeds are one of the simplest ways to transfer real property to a beneficiary without probate. These deeds allow property to automatically pass to a named beneficiary upon the owner’s death. California law recognizes TOD deeds, but they must meet specific requirements to be valid:
- The deed must be signed, notarized, and recorded with the county recorder’s office before the owner’s death.
- TOD deeds are revocable during the owner’s lifetime, providing flexibility.
- They only apply to certain types of real property, such as residential homes.
While TOD deeds are straightforward, they have limitations. For example, they can be contested in court, and they do not provide protection against creditors. A real estate attorney can assist with drafting and recording TOD deeds to ensure compliance with California Probate Code §5600 et seq.
Establish a Living Trust
Living trusts are a powerful tool for avoiding probate. By transferring assets, including real property, into a living trust, you retain control over your property during your lifetime while ensuring seamless transfer to your beneficiaries upon your death. Key features of a revocable living trust include:
- Control and Flexibility: The trustor (creator) can amend or revoke the trust at any time.
- Avoiding Probate: Assets held in the trust do not pass through probate, allowing for immediate distribution.
- Privacy: Unlike probate, trust administration is not a matter of public record.
A real estate attorney can help you properly fund your trust by retitling assets, including deeds, into the trust’s name. Without proper funding, the trust may not achieve its intended purpose.
Consider Joint Ownership Options
Joint ownership allows property to transfer directly to a co-owner without probate. Common types of joint ownership in California include:
- Joint Tenancy with Right of Survivorship (JTWROS): Ensures that the surviving owner automatically inherits the deceased owner’s share.
- Community Property with Right of Survivorship: Specific to married couples, this option combines probate avoidance with favorable tax treatment for capital gains.
Both options provide a clear path for property transfer while avoiding the delays and costs of probate. A real estate lawyer can guide you in choosing the best joint ownership structure for your needs.
Weigh the Benefits and Limitations
While these strategies can help you avoid probate, each has potential drawbacks:
- TOD deeds can be contested and do not protect against creditors.
- Living trusts require ongoing management and proper funding.
- Joint ownership may expose property to the co-owner’s debts and liabilities.
An experienced real estate attorney can help you navigate these complexities and create a customized estate plan to meet your goals.
Work With an Experienced California Real Estate Attorney
Avoiding probate is a critical step in preserving your estate’s value and ensuring a smooth transfer of property to your loved ones. At Vokshori Law Group, our attorneys specialize in crafting innovative, proactive estate planning solutions tailored to your unique circumstances
Schedule a consultation today to learn how we can help you achieve seamless and cost-effective property transfers. Call us at (855) 855-2608 or visit www.VokLaw.com to get started.Avoid the stress of probate—take control of your estate plan today.
