Some people will use a life estate to avoid probate. The way this works is that the property owner grantor has a deed prepared that gives the property to someone else grantee when the owner dies. The grantor has the right to live on and use the real property until death. After the life estate is created, generally the grantor cannot sell the property without the consent of the other person. This kind of deed should only be prepared by an attorney.
Term insurance does not have any cash value until the insured person dies. The policy benefit is paid to your beneficiary when you die. Whole life insurance has some cash value during the lifetime of the insured and will pay benefits when the insured dies.
You should review the terms of any insurance policy to see if the benefits are worth the higher premiums of a whole life policy. When you fill out the forms for a life insurance policy, you are asked to name a beneficiary; that is, to name the person who gets the benefits when you die.
Make sure to fill in the name of a specific person to be your beneficiary. Naming a specific beneficiary keeps an insurance policy out of your probate estate. This is done by using Form VTR As noted, this article is general in nature and should not be relied on as advice for your particular circumstances. For specific advice about your individual situation, it is always best to talk to an attorney. Legal Hotline for Texans: Common Topics. Family, Divorce, and Children. All Topics.
Court Basics. Individual Rights. Name Change. Protection from Violence or Abuse. Self Help. Featured Self-Help. Self-Help Guides. Ask a Question. Guided Forms. Informative Articles. More Resources. Court Information. Helpful Non-Legal Organizations. Types of Legal Help. Legal Assistance. Find Help. Legal Help Directory. Qualifying for Legal Aid. Working with Private Attorneys. Professional Use Only Forms.
Search Search. How can property be owned to avoid the need for probate after a person dies? Here are your options in Texas. In Texas, you can make a living trust to avoid probate for virtually any asset you own—real estate, bank accounts, vehicles, and so on. You need to create a trust document it's similar to a will , naming someone to take over as trustee after your death called a successor trustee. Then—and this is crucial—you must transfer ownership of your property to yourself as the trustee of the trust.
Once all that's done, the property will be controlled by the terms of the trust. At your death, your successor trustee will be able to transfer it to the trust beneficiaries without probate court proceedings. If you own property jointly with someone else, and this ownership includes the "right of survivorship," then the surviving owner automatically owns the property when the other owner dies.
No probate will be necessary to transfer the property, although of course it will take some paperwork to show that title to the property is held solely by the surviving owner.
Joint tenancy. Property owned in joint tenancy automatically passes to the surviving owners when one owner dies. The survivor must, however, live at least hours longer than the deceased co-owner.
No probate is necessary. Joint tenancy often works well when couples married or not acquire real estate, vehicles, bank accounts or other valuable property together.
In Texas, each owner, called a joint tenant, must own an equal share. To establish joint tenancy, owners must sign a joint tenancy agreement. Survivorship community property. Married couples can sign an agreement to own property together as "survivorship community property. In Texas, you can add a "payable-on-death" POD designation to bank accounts such as savings accounts or certificates of deposit.
You still control all the money in the account—your POD beneficiary has no rights to the money, and you can spend it all if you want. At your death, the beneficiary can claim the money directly from the bank without probate court proceedings. Texas does not let you register stocks and bonds in transfer-on-death TOD form.
If someone died without a will, dependent administration is necessary. The executor must obtain a bond, get court approval for distributions, and file periodic reports with the probate court. A third process is "muniment of title. The person filing for muniment of title is responsible for filing an affidavit with the court within six months, attesting that he adhered to the terms of the will.
Whether or not a deceased person left a valid will or trust, certain assets pass outside of probate court automatically. These include:. To determine whether a loved one's estate requires probate administration in Texas, consult with a Texas-licensed probate attorney. Either an attorney or an online service provider can also help you plan ahead so your estate avoids probate when you die.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law. By Cindy DeRuyter, J. Nonprobate Assets Whether or not a deceased person left a valid will or trust, certain assets pass outside of probate court automatically.
0コメント