How to Avoid Probate: A Complete Guide

Leverage beneficiary designations

For bank accounts, certificates of deposits, and similar retirement accounts such as IRAs or 401(k)s, an easy way to avoid probate is to designate someone as a beneficiary in the event of death. This is called pay-on-death (POD) and is generally preferable to joint ownership of the account, since the POD beneficiary has no rights to the account until death occurs.

It’s easy to change any financial account, like a savings account, into a POD account; you just have to inform your financial institution or policyholder that you wish to name a beneficiary. Designating a beneficiary is simply a matter of filling out a form provided by the bank or other financial institution. Upon death, the funds are paid to the designated beneficiary, and the account is closed.

For pay-on-death accounts, you may designate two or more joint beneficiaries (upon death, the funds are divided between them). However, you generally cannot name a successor or contingent beneficiaries (e.g., the funds go to A, but if A is deceased, then to B). To create that level of control, you would need to make a last will or a living trust.

Use transfer-on-death securities

Transfer-on-death or TOD registration is another way to bypass probate and streamline the transfer of securities, including stocks, mutual funds, bonds (both government and corporate), and brokerage accounts. The Uniform Transfer-on-Death Securities Registration Act, adopted by all U.S. states as of 2025, allows you to name one or more beneficiaries who will inherit these assets directly upon your death, without going through probate. The transfer happens automatically, which avoids court involvement or probate delays.

As with POD designations, TOD designations may provide for joint beneficiaries but not successor beneficiaries. Additionally, named beneficiaries have no access or control over assets before the owner's death. 

Use a transfer-on-death deed for motor vehicles

In some U.S. states, a TOD beneficiary designation is allowed for the transfer of motor vehicles, like cars, trucks, and even small boats. In states allowing TOD for motor vehicles, you can name a beneficiary on the vehicle registration form. If you miss that step, contact the department that handles vehicle titles in your state. They can provide you with the necessary information and forms to designate a TOD beneficiary.

As of 2026, transfer-on-death beneficiary designations for motor vehicles are permitted in several states, but availability varies and is governed by individual state motor vehicle statutes. States that allow TOD designations for vehicles include:

Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Illinois, Indiana, Kansas, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Vermont, Virginia, Wisconsin (limited), and Wyoming.

• In Wisconsin, TOD registration is generally limited to specific vehicle categories (such as farm-use vehicles).
• In South Carolina, TOD-style beneficiary designations are recognized in DMV procedures, though statutory language is less explicit.

Because rules differ by state, including eligibility, number of beneficiaries, and lien restrictions, vehicle owners should confirm requirements with their state DMV before relying on TOD designation as a probate-avoidance tool.

Take advantage of small estate provisions in the law

Many states have simplified or expedited probate procedures for estates under a certain value, for certain types of property, or if everything is left to a surviving spouse. 

• Small estates. Most states offer a simplified probate option for small estates, but definitions vary. Check with your estate planning professional to understand your requirements.
• Simplified procedures. Many states let you skip formal probate through a small‑estate affidavit. For example, California Probate Code § 13100–13106 allows estates valued at $184,500 or less in personal property (excluding any real estate) to use this simplified process. 
• Spouses inherit everything. If you leave everything to your spouse in your will, some states offer simplified procedures or exemptions from full probate. In some states, if a surviving spouse inherits all assets, particularly community property or jointly owned assets, they may be eligible for a simplified probate process. However, this doesn’t apply to all asset types or states, and a will alone doesn’t avoid probate. While utilizing small estate measures, remember that they’re subject to varying state laws. For example, California Courts explain that when the entire estate is community property, the surviving spouse can file a Spousal or Domestic Partner Property Petition to transfer assets without going through full probate.

Use a transfer-on-death deed for real estate

Some states allow your real estate investments to escape probate using a simple alternative—the execution and recording of a transfer-on-death deed. The TOD deed must be signed, notarized, and filed in the land records office where the real estate is. With this TOD deed, you’re basically moving the real estate ownership to the beneficiary, yet you retain full control while you’re alive. After your death, the ownership passes immediately. 

As of 2026, transfer-on-death beneficiary designations for real estate are recognized in many states, including Alaska, Arizona, Arkansas, California, Colorado, Delaware, the District of Columbia, Georgia, Hawaii, Illinois, Indiana, Kansas, Maine, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

Because TOD deed laws are governed at the state level and may change, availability and requirements can vary. It’s important to confirm current rules with state law or an estate planning attorney.

Establish a joint ownership for real estate

Joint ownership with the right of survivorship is one of the simplest ways to avoid probate on real estate. When one owner dies, title passes automatically to the surviving owner with no court involvement required. There are three main types of joint tenancy. 

• Joint tenancy with right of survivorship (JTWROS): This provision is available to any two or more people, married or not. 
• Tenancy by the entirety: An enhanced form of joint ownership reserved for married couples or, in some states, domestic partners, grants each spouse 100% undivided ownership. When one spouse dies, the surviving spouse immediately becomes the sole owner by right of survivorship, thereby bypassing the need for probate. Not all states recognize this form of ownership.
• Community property with right of survivorship (CPWROS): This is available only to married couples in the nine community property states — Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska allows couples to opt in through a written agreement but does not apply community property rules by default.

For any of these to work, the deed must explicitly state the survivorship intent. Without the right language, courts typically treat the arrangement as tenancy in common, which does not avoid probate. If you live in a community property state, note that CPWROS also offers a tax advantage over standard joint tenancy: the surviving spouse receives a full step-up in basis on the entire property, which can reduce capital gains taxes on a future sale. The IRS covers this in Publication 555.

Each form of joint ownership carries risks, including gift tax exposure, creditor claims from the co-owner, and potential property tax reassessment in some states. Consult an attorney to choose the right structure and ensure your deed is correctly worded for your state.

Establish joint ownership for non-real estate property

Joint tenancy, while most commonly used for real estate property, can apply to other assets as well, such as financial accounts and securities. Just like jointly owned real estate, if one owner dies, the title passes automatically to the remaining owner through the right of survivorship, a legal mechanism that ensures the surviving co-owner immediately inherits the deceased’s share without the need for probate.

To ensure survivorship applies, the account title must clearly indicate this intent. Financial accounts (bank accounts, brokerage accounts, savings accounts, and investment accounts) have a title document to indicate ownership in the same manner as real estate.

As with real estate, a joint owner acquires certain rights in the property. For example, if you make your daughter a joint owner of your bank account, she typically has the right to withdraw money, even without your explicit permission.