How to Avoid Probate: 6 Tools That Keep Your Family Out of Court

Tool 1: Revocable Living Trust

A revocable living trust is the most versatile probate-avoidance tool. The person creates the trust during their lifetime, transfers assets into the trust (re-titling them in the trust's name), and names a successor trustee to take over management at death or incapacity. When the person dies, the successor trustee distributes the assets according to the trust's terms — no court, no probate, no public record.

A trust can hold real estate, bank accounts, investment accounts, business interests, and virtually any other asset. It also provides incapacity protection — if the person becomes unable to manage their own affairs, the successor trustee steps in without court involvement.

Best for: Real estate, investment accounts, business interests, and families who want comprehensive estate planning in a single document.

Tool 2: Beneficiary Designations

Life insurance policies, retirement accounts (401(k), IRA, 403(b)), and annuities all pass by beneficiary designation. The account holder names a beneficiary on a form filed with the financial institution. When the account holder dies, the beneficiary contacts the institution, provides a death certificate, and receives the asset — outside of probate.

Beneficiary designations override the will. Whatever the form says controls, regardless of what the will says. This makes keeping designations current — and coordinating them with the overall estate plan — essential.

Best for: Life insurance, retirement accounts, annuities.

Tool 3: Payable-on-Death and Transfer-on-Death Accounts

A payable-on-death (POD) designation on a bank account or a transfer-on-death (TOD) designation on a brokerage account works like a beneficiary designation. The account holder names a beneficiary, retains full control of the account during their lifetime, and the beneficiary receives the account at death — outside of probate.

POD and TOD designations are simple to set up — usually a one-page form at the bank or brokerage — and they are revocable at any time. They do not give the named beneficiary any access to the account during the owner's lifetime.

Best for: Bank accounts, brokerage accounts, certificates of deposit.

Tool 4: Joint Ownership With Right of Survivorship

Property held as joint tenancy with right of survivorship (JTWROS) or tenancy by the entirety passes automatically to the surviving owner at death. No probate is required. The surviving owner files an affidavit of survivorship and a death certificate, and the property is theirs.

Joint ownership is simple and effective for the first death, but it has limitations: it exposes the property to both owners' creditors, either owner can sever the tenancy (in JTWROS), and it only works for two deaths if the second owner has their own plan in place.

Best for: Real estate and bank accounts owned by married couples or close family members.

Tool 5: Community Property With Right of Survivorship

In the nine community property states, married couples can elect "community property with right of survivorship" (CPWROS). This combines the tax benefits of community property — a full stepped-up basis at the first death — with the automatic transfer of survivorship. The surviving spouse inherits the deceased spouse's share automatically, without probate.

Standard community property does not include survivorship and requires probate to transfer the deceased spouse's share. CPWROS must be specifically elected — it is not the default.

Best for: Married couples in community property states (AZ, CA, ID, LA, NV, NM, TX, WA, WI).

Tool 6: Transfer-on-Death Deeds

A transfer-on-death (TOD) deed, also called a beneficiary deed, allows a property owner to name a beneficiary who will receive the real estate at the owner's death — outside of probate. The owner retains full ownership and control during their lifetime, can sell or mortgage the property at any time, and can revoke the TOD deed at any time.

TOD deeds are available in approximately 30 states and are particularly useful for families who want to avoid probate on real estate without the cost of creating and funding a trust. They are a simple, low-cost alternative — but they do not provide incapacity protection or control over how the beneficiary uses the property after death.

Best for: Real estate in states that allow TOD deeds, for families who want a simple, low-cost solution.

Matching Tools to Assets

The Bottom Line

Probate is avoidable — but it requires planning during life. A will alone does not avoid probate; it goes through probate. The six tools described above — revocable trusts, beneficiary designations, POD/TOD accounts, joint ownership with survivorship, community property with survivorship, and TOD deeds — each address different types of assets. Most families benefit from using several of these tools together, coordinated as part of a comprehensive estate plan. The time to set them up is now — once the person dies, it is too late to change how assets are titled.