It does not have to be tough to avoid probate. Many people, including you, can utilize these simple and successful methods to ensure that all or part of your real estate property goes to your heirs without having to go through probate court. Rhed key shows you how to avoid a probate situation in Alabama with your real estate property using credible and reliable methods.
5 Ways To Avoid A Probabe Situation With Your Real Estate Property
Joint Property Ownership
One of the easiest methods to avoid the probate process is jointly owning a property with the “right of survivorship.” This method is easy and effective because the deceased joint owner, upon his death, automatically passes full ownership of the property to the living joint owner.
A property could be jointly owned by a couple or two people with a joint bank account. The living joint partner must be named on the joint tenancy property to avoid probate. Also, there must be no other beneficiaries on the title.
Revocable Living Trust
A revocable living trust allows you to transfer your real estate property to someone else (a trustee) to be in charge of it for your benefit. However, you have the right to revoke the trust relationship at any time. Simply put, the trustee handles and takes care of the property. They can claim ownership based on the terms and conditions of the trust relationship. This is a common practice in the real estate market.
Giving the trustee ownership of your property makes it no longer part of your estate and allows you to sidestep the probate process entirely. Moreover, you can instruct the trustee to transfer the property to your family or friends upon your death. This allows you to transfer property without going through the probate process.
Several real estate properties and assets allow you to appoint a beneficiary upon your death. So, when you die, your real estate property is automatically transferred to your beneficiary.
When this happens, your real estate property is no longer a part of your estate, and you can easily avoid probate.
Tenancy by Entirety
In specific states, like Alabama, married couples often take the title in “tenancy by the entirety” and not in joint tenancy.
Tenancy by the entirety is similar to joint tenancy. However, it can be used only by married couples. Tenancy entirety, like joint tenancy, can help couples avoid probate.
Although quite unpopular, gifting your property while you are alive is one of the best ways to avoid probate. Simply put, if you don’t own a property when you are dead, it does not have to go through probate.
Instead of leaving your real estate property to family and friends after you die, give them the property before your demise.
Lastly, you should generally only consider using gifts to avoid probate on smaller, less valuable real estate properties.
There you have it, five ways to avoid a probate situation with your real estate property! If you are experiencing a probate situation now because you lost a loved one, we, at Rhed key properties, have a lot more information that can help you resolve your probate issue swiftly. Also, we buy houses in Alabama, and you can sell your house as-is or with repairs for cash.