How to Avoid Probate When You Own Your Home...

If you own a home, you may be wondering how to avoid probate.

Probate is a court procedure to determine who your heirs are at the time you pass away and transfer title of your assets to these heirs. It takes usually a year, if not more to probate your assets.

If you have a Will, your estate will still get probated.  This is because a Will must be "proved." Proving a Will in plain English means to verify that it was indeed your last Will and that you had capacity when it was prepared.  Suffice to say, the laws indicate that forgery of Wills is more commonplace than we think.

There are two major ways to prevent probate of your home:

1. Holding title of your home in your Living Trust, or
2. Holding title of your home in Joint Tenancy with Right of Survivorship with your heir

If you own your home in Joint Tenancy, then you are giving up control of your home. The person who is on title with you actually owns your home with you. You will need that person's consent to sell or refinance your home. And when you sell, the person is entitled to half of the proceeds of the sale. Further, the person can force you to sell your home through a court process called a partition lawsuit. And, moreover, your home may be subject to this person's creditors.

Sound scary?

I agree.

A Living Trust is a terrific way to maintain control of your home and still decide who should get your home when you pass away.  See your attorney for more information about Living Trusts.