How to avoid probate on a house
Probate on a house commonly takes six to eighteen months and costs three to seven percent of its value. All of it is avoidable, and for most people the cheapest option is also the right one.
The five options
| Option | Cost | Keeps control? | Where it works |
|---|---|---|---|
| Transfer-on-death deed | $69 | Yes, fully | 32 states + DC |
| Lady bird deed | $69 | Yes, fully | FL, TX, MI, VT, WV |
| Survivorship titling | $39 | Shared with the co-owner | Everywhere |
| Revocable living trust | $1,000–$3,000 | Yes, fully | Everywhere |
| Life estate deed | $69 | No. Cannot sell alone | Most states |
How to choose
- If your state has a TOD deed, start thereIt is cheap, revocable, keeps you in complete control, and does exactly one job well. For a single property going to one beneficiary it is hard to beat.
- In Florida, Texas or Michigan, compare the lady bird deedSimilar effect, and homestead exemptions and Medicaid treatment are often more favourable. In Texas and West Virginia you can choose either.
- If you're married, check your titling firstTenancy by the entirety or joint tenancy with right of survivorship already passes the house to your spouse automatically. That may be all you need for the first death. Plan separately for the second.
- If you own several properties or have a complex family, use a trustProperty in multiple states means multiple probates. Minor children, a blended family, a beneficiary with special needs, or a business all point to a trust.
- Be careful with a traditional life estate deedIt avoids probate but you can't sell or refinance without every remainderman signing, and their creditors can attach an interest in your home while you still live there.
The option that is almost always wrong
Adding an adult child to the deed. It avoids probate, and it also makes a taxable gift, forfeits the basis step-up, exposes your home to their creditors and their divorce, and means you can't sell without their signature. Why.
What probate avoidance does not do
- It does not avoid estate tax. Non-probate transfers are still in your taxable estate.
- It does not clear the mortgage. Whoever inherits takes the property subject to the loan.
- It does not always defeat Medicaid estate recovery. That depends on your state's definition of 'estate'.
- It doesn't cover your other assets. Bank accounts, vehicles and investments need their own designations.
We list only what your state recognizes, and say when a trust is the better answer.
Common questions
A transfer-on-death deed at $69 plus a recording fee, where your state offers one. Survivorship titling is cheaper still at $39 if there is already a co-owner you want to inherit it, but it only solves the first death.
No. A will is the instruction manual for probate, not a way around it. Only non-probate transfers avoid the court process: TOD deeds, trusts, survivorship titling, and beneficiary designations.
Commonly three to seven percent of the estate's value, between court fees, executor commissions, and attorney fees, and typically six to eighteen months. On a $400,000 house that is $12,000–$28,000 and a year of your family's time.
Keep reading
Deedly is not a law firm
We provide self-help software and state-specific statutory forms; you make your own decisions about your property. Using Deedly does not create an attorney-client relationship, and nothing here is legal advice. If your situation is complex or contested, talk to a licensed attorney in your state.