When someone passes away owning property solely in their name with no designated beneficiary, their loved ones may be forced to go through probate—a court-supervised process that transfers assets to heirs. 3 Simple ways to avoid probate can help mitigate this burden. Probate is not only time-consuming and public, but often expensive. Legal fees, court costs, appraisal expenses, and personal representative compensation can quickly add up, potentially costing families tens of thousands of dollars.
Fortunately, there are practical ways to avoid probate and spare your loved ones unnecessary stress and financial burden. Below are three proven strategies to protect your estate—and your legacy. These steps are all part of 3 simple ways to avoid probate effectively.
1. Name Beneficiaries on Key Assets
Accounts and property with designated beneficiaries generally bypass probate entirely. These assets transfer automatically upon your death, without court involvement. Common examples include:
- Life insurance policies
- Retirement accounts (401(k), IRA, TSP)
- Annuities
- Certain types of real estate (depending on state law)
What to Watch For:
When you name a beneficiary, that person receives the asset outright, without any restrictions. This can make the inheritance vulnerable to lawsuits, divorcing spouses, or creditors. Beneficiary designations also don’t address what happens if you become incapacitated. Your chosen beneficiary cannot access the account until after your death, so incapacity planning tools—such as a financial power of attorney or trust—are still essential.
2. Use Joint Ownership with Caution
Holding property or accounts jointly with another person may also allow you to avoid probate. When one owner dies, the surviving joint owner typically assumes full ownership. The most common types of joint ownership include:
- Joint Tenancy with Right of Survivorship – Ownership passes automatically to the surviving joint owner.
- Tenancy by the Entirety – A similar structure available to married couples in some states.
- Community Property with Right of Survivorship – Applies in certain states and ensures the surviving spouse receives full ownership.
Proceed Carefully:
Adding someone as a joint owner creates immediate financial and legal risk. If that person is sued, divorced, or has debt issues, your jointly owned asset may be at risk—even while you’re still alive. The exception? Property owned by married couples as tenants by the entirety may offer additional protection from creditors. Tenancy by the entirety does not exist in Colorado. This illustrates one of the 3 simple ways to avoid probate.
3. Create and Fund a Revocable Living Trust
The most comprehensive way to avoid probate is through a properly funded revocable living trust. This estate planning tool allows you to:
- Transfer ownership of your assets into the trust during your lifetime
- Retain full control as trustee and beneficiary while you’re alive and well
- Appoint a successor trustee to manage or distribute the assets if you become incapacitated or pass away
Because your assets are owned by the trust—not you personally—they are not subject to probate. Trust administration happens privately, outside of court, and often much faster than probate. A trust can also help prevent disputes, reduce expenses, and preserve family privacy. This demonstrates one of the key ways to sidestep probate.
Start Planning Today
Avoiding probate is about more than saving time and money—it’s about reducing family stress, maintaining privacy, and protecting the people you care about most.
At Premier Legacy Law, we can guide you through building an estate plan that reflects your values and safeguards your legacy. Whether you’re considering a will, trust, or incapacity planning tools, we’re here to help. Contact us today to schedule a consultation—in person, over the phone, or by video.
