Estate Planning: Ways to Transfer Real Estate and Avoid Probate
Feb 29, 2024
When it comes to estate planning, the goal for most is to avoid probate. In the State of Wisconsin, if you pass away with $50,000 of assets or more, your estate is required to go through the probate process. Since your home can be one of the most valuable assets you own, it can often require your estate to go through the probate process if not addressed in your estate plan. Proper estate planning now can save your loved ones a significant amount of time and money in the future. Let’s discuss some common ways to transfer your real estate to your loved ones and avoid the probate process in Wisconsin.
JOINT OWNERSHIP
If your real estate is titled as joint tenants with right of survivorship, your interest will transfer to the surviving owner at the time of your death and avoid the probate process. There is a form that will need to be recorded showing the transfer of your interest to the other surviving owner(s). In Wisconsin, the form is called Termination of Decedent’s Interest. It is important to note, the only person who can file a Termination of Decedent’s Interest is the still living owner(s). If the survivor dies without filing a Termination of Decedent’s Interest, one or more probate cases may be needed to transfer the property. To learn more, read our blog, “Transferring Property After Losing a Spouse”.
TRANSFER ON DEATH DEED
In Wisconsin you can use a Designation of TOD Beneficiary, more commonly known as Transfer on Death Deed, to transfer your real estate to your loved ones at the time of your death. The deed is executed and filed with the Register of Deeds now but does not take effect until the time of your death. You remain in full control of your property while you are still alive. Upon your death your loved ones become the new owner of the property and your real estate avoids the probate process. The new owner(s) will need to file a Termination of Decedent’s Interest form, referencing and including a copy of the previously recorded Transfer on Death Deed.
LIFE ESTATE DEED
A Life Estate Deed can be used to transfer your property to your loved ones and avoid probate. The Life Estate Deed transfers ownership of your real estate to whomever you choose now but reserves your right to live or use the real estate for the remainder of your life. This means that once the Life Estate Deed is recorded, you no longer have full control of your property. At the time of your death, your loved ones fully own the property without going through the probate process. The new owner(s) will need to file a Termination of Decedent’s Interest form, referencing and including a copy of the previously recorded Life Estate Deed.
TRUST OWNERSHIP
A Revocable Trust allows you to transfer your real estate to your loved ones and avoid probate. Once you create your trust and transfer your real estate into it, you do not own the real estate, your trust does. You retain full control of your property while you are still living and can also control how and when your assets are distributed after you pass away. At the time of your death all property in your trust, including your real estate, will be handled according to the terms of your trust and will avoid probate. Your trust can continue to own the real estate, or your loved one appointed as the successor trustee can sell the real estate and distribute the funds according to your trust.
FREE CONSULTATIONS
As you can see there are different ways to transfer your real estate to your loved ones and avoid probate. What option is best for you and your family depends on your specific circumstances and goals. Meeting with an experienced estate planning attorney can help you understand the benefits and any risks of each option. At Pedersen Law Office, LLC, we offer free consultations. We will meet with you personally to discuss your specific circumstances and see what options are right for you. Our law office serves the communities of Appleton, Neenah, Menasha, Oshkosh, Green Bay and their surrounding areas.