The Power of Proper Titling: How to Keep Your Home Out of Probate

raina58
2 days ago
3 min read

If you read Part 1, 3 Costly Title Mistakes Homeowners Often Make, you already know how a small error in titling can disrupt an estate plan. In Part 2, we focus on what homeowners can do correctly. Specifically, we explain how the correct title can keep your home out of probate, saving time, money, and emotional stress for your family.

What Is Probate and Why It Matters

Probate is the legal process of transferring assets after someone dies. It often results in:

Long delays. Probate can last for months or even years.
High costs. Court fees, executor fees, and legal expenses are often significant.
Lack of privacy. Probate records are public.
Creditor access. Creditors may make claims before beneficiaries receive anything.

If your home is titled only in your name, without a co-owner, a named beneficiary, or a trust, it will almost always be considered a probate asset and must go through the court process.

Title Options That Help You Avoid Probate

Here are the most common title types and how each affects probate:

Sole Ownership

The home is titled in one person’s name. Without any beneficiary designations, the property will go through probate.

Joint Tenants with Rights of Survivorship (JTWROS)

The property is owned equally by two or more people. When one owner dies, the surviving owner automatically inherits. This usually avoids probate if there is a surviving co-owner.

Tenants by the Entirety (for married couples)

Similar to JTWROS, but with added protections. Ownership passes automatically to the surviving spouse and is not subject to probate.

Tenants in Common

Co-owners each hold a defined share. When one dies, that share becomes part of their estate and probate may be necessary unless other planning is in place.

Transfer on Death (TOD) Deed

Allows you to name one or more beneficiaries who will inherit the property when you pass away. This bypasses probate entirely.

Trust Ownership (Revocable Living Trust)

The trust owns the property. Upon death, your trustee transfers it to beneficiaries directly. This avoids probate, keeps the process private, and can provide protection for heirs.

Why Proper Titling Makes a Difference

Faster transfer. Your family does not need to wait for court approval.
Lower cost. Probate-related legal and administration fees are reduced.
Privacy preserved. The transfer remains private instead of becoming public record.
Beneficiary protection. A trust can shield property from creditors, lawsuits, or divorce.
Legacy assurance. Your home passes exactly as you intend, according to your wishes.

A Real-World Scenario

Imagine that you leave your home to your children in your will. However, because the home is titled only in your name, your children cannot take ownership until probate is complete. They face delays, expenses, and the loss of privacy as the probate process plays out in public.

Now consider if you had used a Transfer on Death deed or titled the home in a trust. At your death, your children inherit immediately, privately, and efficiently, without any court involvement.

How to Get Started

Review your current title. Check whether your home is titled in your sole name, jointly, or already in a trust.
Explore your options. Consider Transfer on Death deeds, joint tenancy, or trust ownership. Each has specific advantages and disadvantages.
Consult a professional. State laws vary and every situation is unique. A qualified estate planning professional can guide you to the right choice.

Take the Next Step

At Reflections Life Planning, we help families review every detail of their estate plans, including titles, trusts, and wills. Our goal is to ensure that your plan works in practice, not just on paper.

This article is a service of Reflections Life Planning LLC. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That is why we offer a Life & Legacy Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.