5 Estate Planning Tools to Help You Avoid Probate in 2025

No one likes to think about their own mortality, but failing to plan for what happens to your assets after you’re gone can have serious consequences for your loved ones. If you don’t take steps to keep your property out of probate, your family could be facing a long, expensive, and public court process to settle your estate.

The good news is that there are several smart strategies you can use to avoid probate and ensure a smooth transition of your assets.

1. Create a Living Trust

One of the most effective ways to bypass probate is to create a living trust. A living trust is a legal document that allows you to transfer ownership of your assets into the trust during your lifetime. You can name yourself as the trustee, which means you retain complete control over the assets while you’re alive.

There are two main types of living trusts: revocable and irrevocable. As the name suggests, a revocable trust can be changed or canceled at any time. An irrevocable trust, on the other hand, is much harder to modify once it’s been created.

The key benefit of a living trust is that the assets held in the trust don’t have to go through probate. When you pass away, the trust assets can be quickly and privately distributed to your beneficiaries by the successor trustee you’ve named. This is in stark contrast to a will, which becomes part of the public record during probate.

2. Designate Beneficiaries on Financial Accounts

Many financial accounts allow you to name a beneficiary who will inherit the account when you die. This is commonly done through payable-on-death (POD) or transfer-on-death (TOD) designations.

Here are some of the types of accounts that can have beneficiaries:

• Bank accounts (checking, savings, CDs)
• Investment accounts (brokerage accounts, mutual funds)
• Retirement accounts (IRAs, 401(k)s)
• Life insurance policies

When you name a beneficiary, the assets in the account will pass directly to that person without going through probate. It’s crucial to keep your beneficiary designations up to date, especially after major life events like marriage, divorce, or the birth of a child.

3. Use Transfer-on-Death Deeds for Real Estate

In some states, you can use a transfer-on-death (TOD) deed to pass real estate directly to a beneficiary after your death. Also known as a beneficiary deed, this document allows you to maintain full control of the property during your lifetime. You can revoke the deed or sell the property at any time.

When you pass away, the property immediately transfers to the beneficiary named in the deed without going through probate. As of 2025, about half of the states recognize transfer-on-death deeds. If you’re considering this option, it’s essential to work with an attorney to ensure that the deed is properly drafted and recorded.

4. Take Advantage of Simplified Probate Procedures

Even if you can’t avoid probate entirely, you may be able to simplify the process. Most states have simplified or streamlined probate procedures for “small estates.” What qualifies as a small estate varies by state, but it’s typically an estate valued at less than a certain dollar amount.

In Texas, for example, the small estate limit is $75,000 (as of 2025). If your estate is under this amount, your heirs can use a Small Estate Affidavit to claim your assets without a formal probate. While simplified probate doesn’t avoid the process entirely, it can make it much quicker and easier for your loved ones.

5. Give Away Property During Your Lifetime

A final strategy for avoiding probate is to give away your property while you’re still alive. When you gift assets during your lifetime, they’re no longer part of your estate and thus don’t have to go through probate.

As of 2025, you can give up to $19,000 per recipient per year without having to file a gift tax return. If you’re married, you and your spouse can each give $19,000, for a total of $38,000 per recipient. Even if you give more than this amount, you likely won’t owe any gift tax thanks to the high lifetime gift and estate tax exemption ($13.61 million per individual).

It’s important to note that gifting can have Medicaid implications if you may need long-term care in the future. In general, Medicaid has a five-year “look-back” period where asset transfers can trigger a penalty period of ineligibility.

Are You Ready to Protect Your Legacy and Avoid Probate?

Probate can be a lengthy, costly, and public process, but it doesn’t have to be inevitable. By implementing some smart estate planning strategies, you can ensure that your assets pass quickly and privately to your loved ones after your death.

Are you ready to start planning? Our estate planning lawyers at The Cleverly Law Firm, PLLC, are here to help. We’ve guided countless Wisconsin and Texas families through the estate planning process with tailored strategies and compassionate guidance.

With years of combined experience practicing law, we’re well-versed in the most effective probate avoidance techniques. We’ll work with you to create a personalized plan that protects your assets, provides for your loved ones, and gives you peace of mind. Take the first step today by calling our office or requesting a consultation online.