Probate Alternatives

In some instances, individuals may have alternatives to the traditional probate process when it comes to transferring assets after someone passes away. These alternatives can often be simpler, faster, and more cost-effective than going through probate court. Here are some commonly used probate alternatives in Texas:

Small Estate Affidavit

A Small Estate Affidavit is one option for transferring assets without formal probate proceedings. It can be used when the value of the estate, excluding homestead and exempt property, is $75,000 or less. The deceased person’s heirs can file an affidavit with the probate court stating the value of the estate, the identities of the heirs, and other required information. Once approved by the court, the affidavit serves as proof of the heirs’ right to inherit the assets.

Affidavit of Heirship

An Affidavit of Heirship is a sworn statement by witnesses who can attest to the heirs of a deceased person when there is no formal administration. This document is most often used to establish ownership of real estate and is filed in the real property records of the county where the real estate is located. It can vastly simplify the process of transferring real property by providing evidence of the heirs’ identities and their respective interests in the property. An affidavit of heirship is not appropriate in all situations.

Deeds Transferring Property Outside of the Probate Process

Certain types of property can be transferred outside of probate by using specific deeds. Two common options include:

• Joint Tenancy with Right of Survivorship (JTWROS): With a JTWROS deed, multiple owners hold equal shares of the property, and when one owner passes away, their share automatically transfers to the surviving owner(s) without the need for probate.

• Transfer on Death Deed (TODD): A TODD allows property owners to designate beneficiaries who will inherit the property upon the owner’s death without the need for probate. By completing and recording a TODD during their lifetime, property owners maintain full control and ownership of the property during their lifetime, and the designated beneficiaries automatically assume ownership upon the owner’s death, bypassing probate.

• Ladybird or Enhanced Life Estate Deed:  This type of deed is similar to a TODD as it is executed during a person’s lifetime, names a grantee or grantees while reserving an “enhanced” life estate—meaning that the grantor/owner of the property reserves the right to sell the property without any duty to the grantee(s) and without the requirement for any grantee to join in or agree to that sale. If the person does not revoke the ladybird deed with a later filing the real property records or does not sell the property during his or her lifetime, the grantee(s) will own the property at the person’s death without further requirements or any probate proceeding.

These methods can be particularly useful for transferring real estate without the delays and expenses associated with probate in some instances. Consulting with an experienced attorney can help individuals navigate these alternatives effectively and ensure that assets are transferred according to their wishes.

Contact TS Wright Law

If you have questions about Probate Alternatives, please contact Tiffany Wright at (940) 312-6896 to schedule a consultation.