When an individual passes away, Texas state law dictates that all their assets will be examined through a court process known as probate. During this procedure, assets are used to pay off any remaining debts. The remaining property is then distributed to beneficiaries according to a will. If there is no will, courts will determine the rightful heirs according to intestacy laws. While having a will can streamline probate, most prefer not to put their family and friends through the lengthy—and sometimes costly—legal process. Fortunately, if you’re a Texas resident, you can utilize the following asset protection strategies to avoid probate.

3 Asset Protection Strategies to Prevent Probate in Texas

1. Form a Living Trust

Similar to a will, a living trust is a formal legal document that outlines how you want your assets handled—including how they will be distributed at death. When forming this plan, you’ll name a successor trustee—a person who is responsible for executing the wishes of your trust upon your passing.

This trustee will distribute assets according to your terms without the requirement of probate. In addition, a living trust remains private—so you won’t have to worry about your estate information becoming available to the public.  

2. Establish Right of Survivorship

If you want all your assets to be transferred to a spouse upon death, you can officially designate all assets as survivorship community property. To do this, you’ll need to sign a legal agreement that establishes right-of-survivorship. Upon either spouse’s passing, all community property will go to the surviving partner without probate.

Although this asset protection solution is simple, it’s still important to note that probate may occur later when the surviving spouse passes. To prevent this outcome, you’ll need to work with a financial advisor to develop a more long-term estate planning strategy.

3. Take Advantage of Transfer-on-Death Solutions     

Many assets can carry instructions to transfer the property to another individual upon the owner’s death. For real estate, you simply need to complete a transfer-on-death deed. Vehicles, on the other hand, should be given a transfer-on-death registration. Bank accounts can follow a similar path if you name a beneficiary that’s payable-on-death with your financial institution.

Keep in mind that this option only applies to individual assets and not an entire estate. This strategy is also not applicable to stocks or bonds.

While estate planning can be complex, the financial advisors at Economic Strategist can simplify the process and eliminate the need for probate. Offering complete wealth management services in Addison, TX, this team of experienced professionals will devise personalized solutions to ensure optimal asset protection—such as the creation of a living trust. To learn more about their capabilities, visit this Dallas County financial management firm online or call (214) 383-1350.