The Estate of The Union Season 4|Episode 2 is out now! In this episode of the ESTATE OF THE UNION, Brad Wiewel is going to discuss gifting to grandchildren – is it a blessing or a curse?
As a great general rule, people who have grandchildren are entranced by them! They typically have plenty of photographs to share and stories to tell. These kids are perfect and always will be – right?
In this edition of the Estate of the Union bought to you by Texas Trust Law, Brad Wiewel has some advice for grandparents which may seem to be contrary to the general idea that making substantial gifts to those adorable grandkids is always the right and proper thing to do. Maybe Brad is getting a little bit jaded as he ages, or maybe his advice is worth considering – you get to decide! Is gifting to grandchildren a blessing or a curse?
In each episode of The Estate of The Union podcast, host and lawyer Brad Wiewel will give valuable insights into the confusing world of estate planning, making an often daunting subject easier to understand. It is Estate Planning Made Simple! The Estate of The Union Season 4|Episode 2 is out now! The episode can be found on Spotify, Apple podcasts, or anywhere you get your podcasts. If you would prefer to watch the video version, please visit our YouTube page. Please click on the links to listen to or watch the new installment of The Estate of The Union podcast. We hope you enjoy it.
Texas Trust Law focuses its practice exclusively in the area of wills, probate, estate planning, asset protection, and special needs planning. Brad Wiewel is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. We provide estate planning services, asset protection planning, business planning, and retirement exit strategies.
In a perfect world, you create your will with the guidance of an experienced estate planning attorney, your heirs inherit their legacy and everyone lives happily ever after. In the real world, however, it doesn’t always work out that way. Every year, families scrap over inheritances, says a recent article from Market Watch, “Avoid drama with your will by adding this to your estate plan.” What can you do? Consult with your estate planning attorney about the possibility of including a no-contest clause in your estate plan. How does a no-contest clause protect your will?
This can deter heirs from challenging your will by creating a no-win situation if they challenge the will in court. When a no-contest clause is included in the will, the beneficiary risks losing their entire inheritance.
The goal is to avoid challenges resulting from an emotional response to grief, which is not unusual, or a long-standing family resentment emerging after the death of a parent. People who are quick to pursue litigation will think twice with a no-contest clause.
Is it possible your heirs might challenge your will? Even if the likelihood is low, it’s worth adding the clause. Estate litigation is lengthy, expensive and emotionally draining. Second marriages, economic disparities among siblings, or estranged offspring provide fertile grounds for will challenges. However, even happy families sometimes find themselves in court battles when large inheritances are at stake.
Another factor: seniors who live longer than expected may have heirs who thought they were receiving a substantial inheritance. When there’s a smaller inheritance, the surprise can lead to litigation. Unfortunately, the cost of estate litigation can significantly reduce the value of an inheritance, making it even smaller.
Warren Buffett’s advice to talk about your estate plan with your adult children is a straightforward and sound approach for most families. Offspring taken by surprise in a time of emotional turmoil are more likely to become contentious.
You don’t have to reveal every detail to your heirs. However, you can educate them about the contents of the will and the estate in general. Letting them know about the no-contest cause and your reasons for adding it may preempt strong reactions if they don’t learn about it until after you’ve passed, and they can’t get answers to their questions.
If the family is a blended one, someone is going to be left out entirely, or there are nuances, such as one person inheriting outright while another receives distribution through a trust over time, there’s the possibility of a challenge. If you plan to give assets to someone who isn’t a family member, like a charity or a close friend, the family may unite to challenge the will.
Work with an estate planning attorney to discuss how a no-contest clause can protect your will. A no-contest clause isn’t a guarantee there won’t be a challenge after you’ve died. However, it’s a simple thing to insert into your will and reduces the risk. If you would like to learn more about no-contest clauses, please visit our previous posts.
When a loved one passes away, their home is often one of the most significant assets left behind. However, managing an inherited property can be complicated, involving legal procedures, financial obligations and potential family conflicts.
Knowing what steps to take can help heirs navigate the probate process, handle property expenses and decide whether to sell, rent, or keep the home.
Understanding Probate and Property Transfers
1. Determining Ownership and Title
Before making any decisions, confirming who legally owns the property is essential. Ownership depends on:
Whether the deceased had a will or trust specifying beneficiaries
The state’s inheritance laws if no will exists (intestate succession)
Whether the home was jointly owned by a surviving spouse or co-owner
If the property is included in a will, it must go through probate before transferring it to heirs. However, probate may not be necessary if it was placed in a living trust or owned jointly with survivorship rights.
2. Navigating the Probate Process
If the home is subject to probate, the executor of the estate is responsible for:
Filing legal documents to initiate probate
Paying outstanding debts and property taxes before distributing assets
Determining if the house must be sold to settle debts or be transferred to heirs
Probate can take months or even years, depending on the complexity of the estate. If multiple heirs inherit the home, they must agree on how to proceed with the property.
Financial Responsibilities of Inheriting a Home
1. Covering Mortgage and Property Expenses
If the home still has a mortgage, the heir must continue making payments or risk foreclosure. Other financial obligations include:
Property taxes and homeowner’s insurance
Utility bills and maintenance costs
Homeowners’ association (HOA) fees, if applicable
If the deceased had a reverse mortgage, the estate may need to sell the home or pay off the loan before inheriting it.
2. Selling vs. Keeping the Home
Once ownership is settled, heirs must decide whether to:
Keep the home – Ideal if a family member plans to live in it or use it as an investment.
Sell the property – A common choice to divide assets among heirs and cover expenses.
Rent the home – Provides an income stream but requires property management.
A legal dispute may arise if multiple heirs inherit the home but disagree on what to do. Having a clear estate plan can help prevent these conflicts.
Steps to Take When Managing an Inherited Home
Secure the Property – Change locks, check for damages and notify homeowners insurance of the owner’s passing.
Review Debts and Expenses – Determine if the home has outstanding loans, unpaid taxes, or liens.
Get a Home Appraisal – Assess the market value to guide selling, renting, or estate distribution decisions.
Settle Ownership and Probate Issues – Work with an attorney to transfer the title to heirs or sell the property.
Decide on Next Steps – Weigh financial and personal factors before keeping, selling, or renting the home.
Get Legal Guidance for Managing an Inherited Home
Managing an inherited property can be complicated, requiring careful legal and financial planning. Whether you need to navigate probate, resolve title issues, or explore selling options, and experienced estate planning law firm can help ensure a smooth transition. Id you would like to learn more about inherited property, please visit our previous posts.
Timeshares are often marketed as affordable vacation ownership. However, what happens when they become part of an estate? Many heirs are surprised to learn that timeshares do not function like traditional real estate assets—instead of inheriting a valuable investment, they may be left with ongoing maintenance fees, restrictions on resale and unexpected legal obligations. Understanding the downsides of inheriting a timeshare can help beneficiaries decide whether to keep, sell, or disclaim the property.
The Hidden Costs of Inheriting a Timeshare
Unlike traditional real estate, timeshares come with mandatory fees and restrictions, making them a financial liability rather than a valuable inheritance.
1. Ongoing Maintenance Fees
One of the most significant downsides of inheriting a timeshare is the never-ending maintenance fees, which must be paid whether you use the property. These fees:
Increase annually, often outpacing inflation
Can amount to thousands of dollars per year
Must be paid even if the timeshare goes unused
Failure to pay can result in collections, credit damage, or even foreclosure.
2. Difficulty Selling or Transferring Ownership
Many assume they can sell an inherited timeshare. However, resale is notoriously difficult. Timeshares:
Depreciate quickly and often have little to no market value
Have limited buyer demand, even for desirable locations
May include contract clauses that restrict resale or transfer options
Some heirs spend years trying to offload an unwanted timeshare, only to realize they are stuck paying fees indefinitely.
3. Potential Legal Liabilities
If a timeshare is deeded property, heirs become legally responsible for all associated costs. This means:
The management company can take legal action to collect unpaid fees
Inheritance laws may force multiple heirs to share financial obligations
Some contracts bind heirs indefinitely, making it hard to walk away
Even if a timeshare seems appealing initially, the long-term costs and restrictions can outweigh any perceived benefits.
How to Avoid Inheriting a Timeshare
1. Disclaiming the Inheritance
Heirs are not required to accept a timeshare inheritance. If an estate includes an unwanted timeshare, beneficiaries can legally disclaim it by filing a formal refusal with the probate court before taking ownership.
However, disclaiming must be done before using the timeshare or making any payments, as this can be seen as accepting ownership.
2. Negotiating a Deed-Back with the Resort
Some resorts allow heirs to return the timeshare through a “deed-back” program. This involves:
Contacting the timeshare company to check eligibility
Submitting necessary paperwork to relinquish ownership
Paying any final fees required to exit the contract
Not all resorts offer this option; some may charge a fee for releasing ownership.
3. Seeking Legal Assistance to Exit a Timeshare
If a resort refuses to take back the timeshare, an estate planning attorney can help explore other legal options. This may include:
Reviewing the contract for loopholes
Negotiating with the management company
Exploring legal exit strategies that protect the estate from liability
Many families assume they must accept an inherited timeshare. However, it may be possible to legally remove this financial burden with the right approach.
Should You Keep an Inherited Timeshare?
While most heirs choose to avoid inheriting a timeshare, some may find value in keeping one under the right conditions. It may be worth keeping if:
The location is desirable and frequently used by family members
The maintenance fees are affordable compared to rental costs
The contract allows for flexibility in usage and resale
However, long-term costs and restrictions should be carefully evaluated before deciding. Understanding the downsides of inheriting a timeshare can help you avoid a potentially costly and difficult headache. If you would like to learn more about managing inherited property, please visit our previous posts.
Building wealth is only half the battle—ensuring that it lasts for future generations requires careful estate planning and strategic wealth management. Many families fail to implement a structured plan, leading to lost assets, unnecessary taxes and family disputes. Without the proper legal and financial strategies, even substantial inheritances can be squandered within a generation. Estate planning can bridge the gap between generational wealth; ensuring that wealth is protected, distributed according to the family’s wishes, and sustained for years to come.
Why Generational Wealth Often Fails to Last
Studies show that 70% of wealthy families lose their wealth by the second generation and 90% by the third. The primary causes include:
Lack of financial literacy – Heirs often receive wealth without a plan for responsible management.
Estate tax burdens – Without proper planning, substantial portions of an estate may be lost to federal and state taxes.
Legal disputes – Poorly structured wills and trusts often lead to costly inheritance battles.
Failure to adapt to changing financial laws – Inheritance laws, tax regulations and trust structures evolve over time.
Estate planning provides legal structures and safeguards to prevent these issues and ensure that family wealth remains intact.
How Estate Planning Protects Generational Wealth
Structuring Trusts for Long-Term Asset Protection:
Trusts are among the most effective tools for protecting wealth and ensuring that assets are passed down responsibly. Unlike a will, which simply distributes assets, trusts provide ongoing management and protection.
Common trust structures include:
Revocable Living Trusts – Allow individuals to control assets during their lifetime, while avoiding probate upon death.
Irrevocable Trusts – Provide stronger asset protection and tax advantages by permanently removing assets from the grantor’s estate.
Generation-Skipping Trusts (GSTs) – Allow assets to bypass one generation, reducing estate tax liability for grandchildren.
Trusts also allow customized inheritance distribution, such as delayed payouts, financial milestones, or incentives for responsible wealth management.
Minimizing Estate Taxes and Legal Fees:
High-net-worth individuals face significant estate tax challenges if wealth is not structured correctly. An estate planning attorney helps reduce tax exposure through:
Charitable giving – Donating assets through charitable remainder trusts or donor-advised funds offers tax deductions while benefiting causes.
Family Limited Partnerships (FLPs) – These allow wealth to be transferred gradually, minimizing tax burdens.
Without tax planning, heirs may be forced to sell assets or businesses to cover tax liabilities.
Preventing Family Disputes Over Inheritance:
Even well-meaning families can experience conflict over wealth distribution. An estate planning attorney helps prevent disputes by:
Creating straightforward wills and trust agreements that specify asset distribution.
Including business succession plans to ensure seamless leadership transitions in family businesses.
Establishing conflict resolution mechanisms like mediation clauses to settle disputes outside of court.
A structured estate plan ensures that inheritance disagreements do not escalate into costly legal battles.
Teaching Financial Responsibility to Heirs:
Wealth transfer is more effective when heirs understand how to manage their inheritance. Estate planning attorneys work with families to:
Educate younger generations on financial management and investment strategies.
Introduce heirs to financial advisors who can help them navigate wealth preservation.
Incorporate inheritance incentives that promote responsible spending and investment.
Without financial education, even a well-structured estate plan can fail to maintain generational wealth.
Estate Planning for Business Owners
Family businesses require careful succession planning to ensure stability after the founder’s passing. An estate planning attorney helps:
Identify and prepare successors for leadership transitions.
Establish buy-sell agreements to ensure smooth ownership transfers.
Structure ownership in trusts or LLCs to provide financial protection.
Companies often struggle to survive past the first generation without a business succession plan.
Secure Your Family’s Financial Legacy
Estate planning can bridge the gap between generational wealth. It will give you the confidence that your assets are preserved, managed wisely and passed down without unnecessary financial losses. if you would like to learn more about managing generational wealth, please visit our previous posts.
The Estate of The Union Season 4|Episode 1 is out now! In this episode of the ESTATE OF THE UNION, Brad Wiewel is going to share with you how to SUPER STRETCH an IRA!
Here’s some background: Retirement accounts like IRAs, 401ks and 403bs are subject to a myriad of new rules on how fast the money needs to be distributed to a non-spouse beneficiary. While there are exceptions, for the vast majority of beneficiaries, the money must be emptied out in ten years, which means that those funds are going to be subject to taxes more quickly and now they are growing in a “taxable” environment.
Enter the Testamentary Charitable Remainder Trust (weird name, right?). As Brad describes it, this trust which can be part of a revocable living trust or a will, and it allows the ultimate beneficiaries (kids, etc.) to take the retirement account distributions over their LIFETIME (Super Stretch), not just ten years! Brad paints the BIG picture and gives enough details for it to make sense to you.
In each episode of The Estate of The Union podcast, host and lawyer Brad Wiewel will give valuable insights into the confusing world of estate planning, making an often daunting subject easier to understand. It is Estate Planning Made Simple! The Estate of The Union Season 4|Episode 1 is out now! The episode can be found on Spotify, Apple podcasts, or anywhere you get your podcasts. If you would prefer to watch the video version, please visit our YouTube page. Please click on the links to listen to or watch the new installment of The Estate of The Union podcast. We hope you enjoy it.
Texas Trust Law focuses its practice exclusively in the area of wills, probate, estate planning, asset protection, and special needs planning. Brad Wiewel is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. We provide estate planning services, asset protection planning, business planning, and retirement exit strategies.
While the number of wills being contested may sound small, this number doesn’t include the many wills not contested because of strategies used to discourage litigation. If your family includes people likely to battle over your estate plan, you’ll want to know about how a no-contest clause can protect your planning. A recent article from Think Advisor, “How to ‘Bulletproof’ a Will With a No-Contest Clause,” explains how to protect your wishes.
Tens of thousands of wills are impacted by contested wills yearly, and even the closest families can find themselves fighting over inheritances. One way to prevent this is with no-contest clauses, also known as the in-terrorem clauses, placed in wills and trusts to discourage heirs from voiding their claims to any part of the overall estate if they challenge the will in court proceedings.
Estate battle reasons vary, from sibling rivalry to intergenerational power struggles. The outcome of using a no-contest clause depends on state statutes, evolving case law and how much the warring parties can or want to invest in estate litigation.
Encouraging discussion between all stakeholders in advance of the passing of the parent or grandparent can give time for everyone to work through any disagreements before courts become involved. However, even with the best of intentions, clear communication doesn’t always resolve the issues.
Almost every jurisdiction has addressed whether or not no-contest clauses can be enforced, either by law or by case law. Vermont doesn’t have any laws about enforcement, and Indiana and Florida do not allow the use of no-contest clauses.
A no-contest clause is relatively simple. However, there are limitations to be aware of. No-contest clauses work only for named beneficiaries who have a claim in the will, and they must be given a sufficient interest under the will or trust for the no-contest clause to be useful. Someone who has been cut out of a will entirely has nothing to lose by taking family members to court for their perceived deserved inheritance, while someone who stands to inherit something, albeit a smaller amount than they would have wished, could lose everything if the no-contest clause is enforced.
Many estate litigation matters involve individuals who receive significant interests. However, feel they that did not receive what they see as unequal or non-controlling interests. In these cases, the enforcement may be relatively straightforward.
Challengers who file actions because they believe someone unduly influenced the testator can be problematic. Few people understand how undue influence works in a legal setting. Undue influence can be found when a person makes bad or unfair choices because of an alleged wrongdoer’s behavior towards them, causing the victim to placate the person. However, proving undue influence is not easy.
There are strategies to overcome no-contest clauses, so estate plans must be prepared with these in mind. In some instances, estate administration is challenged, including actions over improper investments, or raising interpretations of ambiguities.
An estate planning attorney with experience will show you how a no-contest clause can protect your planning and create an estate plan to stand up to challenges from dissatisfied family members or others who feel they have been treated unfairly. If you would like to learn more about no-contest clauses, please visit our previous posts.
Estate planning serves to make your wishes known, plan for the future and enjoy peace of mind knowing that you have protected yourself and your family. Young adults, unmarried people and parents juggling family and work also need an estate plan, according to a recent article from Success, “What to Consider When Making a Will—and the Difference Between a Will and a Living Will.” Understanding the difference between a Living Will and a Last Will and Testament is critical to successful estate planning.
A Last Will and Testament and a Living Will are essential parts of every estate plan. However, their similar names can lead to confusion. They serve two very different purposes.
A Will provides directions to be followed when administering your wishes. The will names an executor who manages the estate and distributes assets in the probate estate. A guardian for minor children is also part of a will. This is why it’s so important for parents with young children to have an estate plan, including a will. If there is no will, a court will decide who will raise the children if both parents die.
Young adults, who generally believe they are immortal, often engage in high-risk activities and travel to exotic places. They should have a will and, equally importantly, a living will. This document is used to express preferences for medical care if one is seriously ill or injured and cannot communicate their wishes.
Similarly, young adults should also have an Advance Directive or a Medical Power of Attorney so someone they choose can make decisions if they are incapacitated, whether by illness or injury.
A Power of Attorney is needed to allow someone else to handle financial and legal matters in case of incapacity. Taken together, the will, living will and advance directive allow someone else to take over for you while you are living or after you have died.
Digital assets need to be addressed for anyone with an online life—which means almost everyone, especially younger people. Access to bank accounts, utility companies, photos stored online, social media accounts and digital property is a part of contemporary life. Settling an estate without this information will be difficult, if not downright impossible.
Estate plans need to be reviewed every three to five years and when significant life events occur, like marriage, divorce, the birth of a child, or a big change in financial circumstances. An experienced estate planning attorney will ensure you have a full understanding of the difference between a Living Will and a Last Will and Testament. They can guide you through this process, making it far easier than expected. If you would like to learn more about a Living Will, please visit our previous posts.
Leaving an inheritance to a child with addiction requires thoughtful planning to balance their needs with potential risks. Addiction can compromise a person’s ability to manage finances responsibly, increasing the likelihood of misused funds or exacerbating harmful behaviors. By implementing tailored estate planning strategies, parents can protect their children, while ensuring their legacy is used constructively.
Challenges of Leaving a Lump Sum Inheritance
Directly transferring a lump sum inheritance to a child with addiction poses significant risks. The sudden availability of large amounts of money can intensify addictive behaviors, leading to financial instability, strained family relationships and even legal troubles.
In addition, addiction often results in a lack of financial literacy or accountability, making it difficult for the individual to manage their inheritance responsibly. Parents must consider these challenges when planning their estate to ensure that the inheritance is a source of support rather than harm.
Estate Planning Strategies to Protect a Child with Addiction
A trust is one of the most effective tools for managing an inheritance for a child with addiction. Parents can appoint a trustee to oversee distributions and ensure that the funds are used responsibly by creating a discretionary trust.
The trustee, often a professional or trusted family member, can manage payments for essential needs like housing, education, or treatment. This arrangement provides financial stability, while minimizing the risk of misuse.
Include Incentives
Incentive trusts encourage positive behaviors by linking distributions to specific milestones or achievements. For example, a trust might provide additional funds if the beneficiary completes a rehabilitation program, maintains stable employment, or avoids legal troubles.
By structuring the trust this way, parents can promote recovery and self-sufficiency, while ensuring the inheritance aligns with their child’s best interests.
Use Spendthrift Provisions
Spendthrift provisions limit the beneficiary’s access to the trust’s funds, protecting the assets from creditors, lawsuits, or impulsive spending. This legal safeguard is particularly valuable for individuals with addiction, as it prevents external pressures or poor decision-making from depleting the inheritance.
Consider Lifetime Gifting
For parents who prefer to provide financial support during their lifetime, lifetime gifting allows them to contribute smaller, manageable amounts. This approach enables them to monitor how their child uses the funds and adjust future support based on their child’s progress and needs.
Collaborate with Addiction Professionals
Involving addiction specialists or financial therapists in the planning process can help parents design an inheritance strategy tailored to their child’s specific challenges. These professionals can offer guidance on treatment resources, behavioral incentives and effective trust structures.
Communicating the Plan
Open communication about the estate plan can help manage family expectations and reduce potential conflicts. While discussing addiction and inheritance may be difficult, transparency fosters understanding and ensures that other family members are aware of the reasoning behind specific decisions.
Parents should also document their intentions clearly in the estate plan to prevent disputes among heirs. Including a letter of intent can provide additional context and convey the love and support behind the decisions.
The Role of Professional Guidance
Leaving an inheritance to a child with addiction requires thoughtful planning. Working with an estate planning attorney is essential to navigating these complexities. Attorneys can help draft trusts, incorporate spendthrift provisions and ensure that the plan complies with legal requirements. Their expertise ensures that the inheritance strategy aligns with the family’s goals, while protecting the child’s long-term well-being. If you would like to learn more about inheritance planning, please visit our previous posts.
Navigating probate for out-of-state properties can be complex. Property outside the deceased’s home state requires additional steps, often involving separate probate processes, known as ancillary probate. This process can be complex and time-consuming for beneficiaries, so knowing how to avoid and manage it is essential.
Understanding Ancillary Probate
Ancillary probate is a secondary process required when a decedent owns real estate in a different state from where they resided. Each state has its own probate rules, and ancillary probate ensures that local laws govern property transfer within that state. This process involves additional court proceedings, paperwork and, often, hiring an attorney licensed in that state.
The necessity of ancillary probate can complicate estate settlement, leading to delays and added legal fees. However, understanding how this process works and planning accordingly can help streamline property transfer and reduce administrative burden for beneficiaries.
Drawbacks of Out-of-State Probate
Out-of-state probate can be particularly burdensome for estate executors and beneficiaries. Key challenges include:
Time and Expense: Ancillary probate can take months or even years to resolve, especially if multiple properties are involved. This can delay property transfers and increase expenses, from court costs to attorney fees in each state.
State-Specific Rules: Each state has probate requirements, and navigating unfamiliar regulations can be difficult. These complexities often necessitate hiring local legal assistance, further increasing costs.
Potential for Disputes: With multiple jurisdictions involved, disputes are more likely to arise, complicating property transfers and causing additional delays.
Recognizing these challenges early can help estate planners and executors find ways to avoid or mitigate the effects of ancillary probate.
Solutions to Avoid Ancillary Probate
Once you realize that you’re at risk of ancillary probate, the next step is implementing strategies to avoid it. Thankfully, there are several ways that you can keep your property out of ancillary probate.
Transfer Property Ownership with a Revocable Living Trust
One of the most effective ways to avoid ancillary probate is to transfer real estate ownership into a revocable living trust. By placing property into a trust, the owner maintains control over the asset during their lifetime. Upon their passing, the trust facilitates the property’s transfer directly to beneficiaries, bypassing the need for probate altogether. Trusts are also adaptable, allowing the owner to make changes as needed during their lifetime.
Establish Joint Tenancy with Right of Survivorship
Another strategy for avoiding ancillary probate is establishing joint tenancy with the right of survivorship (JTWROS) on out-of-state properties. In a JTWROS arrangement, property ownership automatically passes to the surviving joint owner, eliminating the need for probate. This method benefits spouses or relatives wishing to simplify property transfer upon death. However, it’s important to remember that JTWROS does not allow flexibility in asset distribution, since ownership automatically transfers to the surviving owner.
Use a Transfer on Death (TOD) Deed
A Transfer on Death (TOD) deed is another probate-avoidance tool available in some states. This type of deed allows property owners to name a beneficiary who will inherit the property upon death. The TOD deed doesn’t impact ownership during the owner’s lifetime and can be changed or revoked as desired. Upon the owner’s passing, the TOD deed transfers the property directly to the named beneficiary, bypassing probate. However, it’s crucial to check if this option is available, as not all states permit TOD deeds.
Consider Selling the Property Before Death
Sometimes, selling out-of-state property before death can eliminate the need for ancillary probate. By liquidating the asset, the estate avoids probate proceedings in that state, simplifying asset distribution for beneficiaries. While this may not be the best solution for all situations, it’s a viable option for those who want to reduce the probate burden on their loved ones. It’s worth consulting an estate planning professional to weigh the financial implications of selling versus retaining the property.
Navigating probate for out-of-state properties can be complex, especially for executors unfamiliar with ancillary probate processes. If you would like to learn more about probate, please visit our previous posts.
Information in our blogs is very general in nature and should not be acted upon without first consulting with an attorney. Please feel free to contact Texas Trust Law to schedule a complimentary consultation.
