How to Avoid Probate: 7 Strategies That Actually Work

If you are planning your estate, the single most impactful thing you can do for your heirs is keep your assets out of probate. Probate is slow (9 to 24 months on average), expensive (up to 4% to 7% of the estate's value depending on the state), and entirely public. Anyone can look up the court file and see every asset, debt, and beneficiary listed. The Uniform Probate Code, adopted in whole or in part by roughly 18 states, streamlines probate but does not eliminate it. If you are an heir currently stuck in probate, understanding these tools can help you plan for the future, and there are options for getting cash now while you wait.

Why Avoid Probate?

The case for avoiding probate comes down to three factors:

• Time. Even simple estates take 6 to 12 months. Complex estates can take 2 to 4 years. During this time, heirs can’t access most of the inherited assets.
• Cost. Attorney fees, executor compensation, court filing fees, appraisals, and other expenses can consume 2% to 7% of the estate’s gross value depending on the state. On a $500,000 estate, that’s $15,000 to $35,000 that heirs never see.
• Privacy. Probate is a public court proceeding. The will, asset inventories, creditor claims, and distribution details become part of the public record. Anyone, including marketers, scammers, and estranged relatives, can access them.

If you are an heir already stuck in probate and need cash now, skip ahead to the probate advance section or call (800) 317-3769 to find out what you qualify for.

7 Ways to Avoid Probate

1. Create a Revocable Living Trust

A revocable living trust is the most comprehensive probate avoidance tool. You create the trust, transfer your assets into it during your lifetime, and name beneficiaries who receive those assets when you die, entirely outside of probate court. You maintain full control of the assets while you’re alive and can modify or revoke the trust at any time.

The key: the trust only avoids probate for assets that are actually titled in the trust's name. A trust that exists on paper but has not been "funded" (meaning assets were never re-titled) provides no probate protection. The single most common estate planning mistake.

Best for: Estates of any size, especially those with real estate in multiple states.

2. Use Joint Ownership With Right of Survivorship

When two people own property as “joint tenants with right of survivorship” (JTWROS) or as “tenants by the entirety” (available to married couples in some states), the surviving owner automatically inherits the deceased owner’s share, no probate required. This works for bank accounts, investment accounts, and real estate.

The limitation: joint ownership means the other person has equal rights to the asset during your lifetime. It also means the asset could be exposed to their creditors, divorce proceedings, or financial problems. Use this strategy deliberately, not as a shortcut.

Best for: Married couples and close family members with a high level of trust.

3. Name Beneficiaries on All Accounts

Most financial accounts allow you to name a “payable on death” (POD) or “transfer on death” (TOD) beneficiary. When you die, the account passes directly to the named beneficiary, no probate, no waiting, no court involvement. This applies to bank accounts, brokerage accounts, CDs, and in many states, vehicle titles.

Common accounts that accept beneficiary designations:

• Checking and savings accounts (POD)
• Brokerage and investment accounts (TOD)
• Retirement accounts, 401(k), IRA, Roth IRA (beneficiary designation)
• Life insurance policies (beneficiary designation)
• Health savings accounts (beneficiary designation)

Best for: Everyone. This is the simplest and most overlooked probate avoidance strategy.

If you only do one thing after reading this page, make it this: check that every financial account you own has a named beneficiary. It takes 10 minutes and it is the single easiest way to protect your family.

4. Use Transfer on Death Deeds for Real Estate

More than 30 states now allow “transfer on death” (TOD) deeds for real property. These deeds let you name a beneficiary who automatically inherits the property when you die, without probate. You retain full ownership and control during your lifetime, you can sell, mortgage, or change the beneficiary at any time.

States that currently allow TOD deeds include Arizona, California, Colorado, Illinois, Indiana, Minnesota, Missouri, Nevada, Ohio, Oregon, Texas, Virginia, Washington, and Wisconsin, among others. Check your state’s specific requirements.

Best for: Homeowners who want to pass property to a specific person without the cost of creating a trust.

5. Gift Assets During Your Lifetime

Assets you give away while alive don’t go through probate because they’re no longer part of your estate when you die. The federal annual gift tax exclusion allows you to give up to $19,000 per recipient per year (2025 limit, indexed for inflation) without any gift tax consequences. Married couples can give $38,000 per recipient per year.

Lifetime gifting is a powerful probate avoidance strategy, but it has trade-offs. Once you give an asset away, you lose control of it. For real estate, the recipient gets your cost basis (not the stepped-up basis they’d get through inheritance), which can create a larger capital gains tax bill if they sell.

Best for: People with enough assets to live comfortably after gifting, particularly for cash and financial assets.

6. Use Small Estate Procedures

Most states offer a simplified process, or no probate at all, for estates below a certain value. Thresholds vary widely:

• California: $208,850 (affidavit process)
• Texas: $75,000 (small estate affidavit)
• New York: $50,000 (voluntary administration)
• Florida: $75,000 (summary administration)
• Ohio: $35,000 (release from administration)

If the estate qualifies, heirs can claim assets with a simple affidavit, no court hearings, no executor appointment, and no attorney fees in most cases. The entire process can be completed in weeks.

Best for: Smaller estates, especially those with primarily liquid assets.

7. Hold Property in a Business Entity

Placing real estate or business assets in an LLC or family limited partnership can keep them out of probate. When you die, your ownership interest in the entity passes according to the operating agreement, not through probate court. The underlying assets (real estate, equipment, etc.) remain owned by the entity and are unaffected.

This strategy is more complex and involves ongoing maintenance (tax returns, annual filings), so it’s typically used for investment properties or business assets rather than a primary residence.

Best for: Real estate investors and business owners with multiple properties or significant business assets.

What If You’re Already in Probate?

If you are reading this as an heir, not as someone doing estate planning, the strategies above cannot help you retroactively. The estate is already in probate, and you are waiting.

We see heirs in this exact situation every week. The estate is in probate, the bills keep coming, and you are stuck waiting for a process you have no control over. That is what our probate advance is for. CSF gives you immediate access to a portion of your expected inheritance while probate plays out. No monthly payments and no personal liability. If the estate ultimately pays out less than expected, you keep every dollar and owe nothing back.

CSF advances $5,000 to $250,000 based on your share of the estate. Most advances are funded within 2 to 3 business days. Call (800) 317-3769 or request a free quote to find out how much you can receive.

Frequently Asked Questions

What is the cheapest way to avoid probate?

Naming beneficiaries on financial accounts using payable on death (POD) or transfer on death (TOD) designations is the cheapest way to avoid probate. It costs nothing at most banks and brokerages, and the accounts pass directly to your named beneficiary without court involvement when you die.

Does a will avoid probate?

No. A will does not avoid probate. A will must go through probate court to be validated and enforced. The will tells the court how you want your assets distributed, but the court still supervises the entire process. To avoid probate, you need tools like a revocable living trust, beneficiary designations, or joint ownership with right of survivorship.

How much does a living trust cost to set up?

A basic revocable living trust typically costs $1,500 to $3,000 when prepared by an estate planning attorney. More complex trusts involving multiple beneficiaries, business assets, or real estate in several states can cost $3,000 to $5,000 or more. Online legal services offer simpler versions for $300 to $600, though professional guidance is recommended for anything beyond a straightforward estate.

Which assets don’t go through probate?

Assets that bypass probate include those held in a living trust, accounts with named beneficiaries (life insurance, retirement accounts, POD/TOD accounts), jointly owned property with right of survivorship, and assets transferred via transfer on death deeds in states that allow them. Any asset with a built-in transfer mechanism avoids the probate process entirely.

Can you get your inheritance early while probate is pending?

Yes. A probate advance from Catalina Structured Funding gives you immediate access to a portion of your expected inheritance, typically within 2 to 3 business days. There are no monthly payments and no credit check required. If the estate pays out less than expected, you keep the advance and owe nothing back.

How long does probate take without a will?

Probate without a will (called intestate probate) typically takes 12 to 24 months, though it can take longer if family members dispute the distribution. Without a will, state intestacy laws determine who inherits, which may not match what the deceased person intended. The court appoints an administrator to manage the estate rather than an executor named in a will.

The Bottom Line

Probate is avoidable, but only with advance planning. The most effective approach combines a revocable living trust for major assets, beneficiary designations on all financial accounts, and TOD deeds for real estate. Together, these three tools can keep the vast majority of an estate out of probate entirely.

For heirs currently waiting on probate, the focus shifts to getting through the process and accessing funds when you need them. We have helped heirs in probate situations lasting 12, 18, even 36 months. The most common reasons estates get stuck? Real estate that needs to be sold, debts that need to be settled, and family disagreements about who gets what. A probate advance bridges that gap so you are not waiting empty-handed. Tell us about your situation and we will let you know what you qualify for.