At Voorhees Law Group, one of the most common questions we hear from homeowners is: “If I leave my house to my children, will they have to go through probate?”
It’s a smart question because for many families, the house is the crown jewel of their legacy. And probate? Let’s just say it’s not exactly a holiday you want to attend. It can be long, expensive, and stressful.
The short answer is yes, there are ways to transfer your property without probate. But the truth is, the details matter. Each option has its perks and its pitfalls, which is why you don’t want to wing this decision.
Using a Deed to Transfer Real Property
Some homeowners use a deed that transfers ownership at death so their loved ones can skip probate. Here are a few ways that can look:
- Life Estate Agreement – You keep the right to live in your home for life, but ownership automatically passes to the person you name when you pass away. The catch? You can’t sell or refinance the property without your beneficiary’s blessing. Flexibility goes out the window.
- Transfer-on-Death (TOD) Deed – Works a lot like a Lady Bird deed. You name a beneficiary who automatically gets the property when you pass away, and you can revoke it at any time. But not every state allows TOD deeds, so it’s not always an option.
The Downsides of Deeds
Deeds can be helpful, but they also come with strings attached:
- Beneficiaries inherit the property outright, meaning it’s fair game for creditors or even divorcing spouses.
- If a beneficiary has special needs, inheriting property directly could hurt their benefits.
- If you lose capacity, the deed doesn’t give your loved one any authority to help manage the property. That leaves your family dependent on a power of attorney or, worse, a court-appointed guardian.
- Once your beneficiary gets the property, they can do whatever they want with it, which may not match your vision.
Why a Trust May Be a Better Solution
For many families, putting a home in a living trust is the smarter, more flexible move. A trust lets you:
- Avoid probate while keeping full control during your lifetime
- Protect your beneficiaries from creditors or messy life situations
- Set conditions or guidelines for how the property is managed or used
- Create a seamless plan if you lose capacity
Yes, a trust may cost a little more upfront. But that investment can save your family from massive costs, delays, and drama later on.
The truth is, there’s no one-size-fits-all answer for transferring real property. At Voorhees Law Group, we help families sort through the pros and cons of deeds, trusts, and other planning strategies so they can make the best decision for their goals.
If you’re wondering how to pass your home to loved ones while avoiding unnecessary court battles, let’s make a plan together. Request a Consultation