The distribution of real estate can be a good deal or a bad deal.
One way to avoid real estate going through probate is to put someone else’s name on the ownership of the asset. However, that almost always comes out badly, according to the Daily Republic in “All Things Real Estate: Living trust best way to pass house to children.”
Among the problems is the fact that adding someone’s name to your real estate deed makes it available to that person’s creditors. Although it is not always issue, when it does occur, it is normally a big one.
A much better way to avoid having real estate go through probate is to create a revocable living trust. Then, the real estate can be transferred to the trust, giving the trustee of the trust authority to pass the property under the terms of the trust, thereby avoiding probate after the owner passes away.
An estate planning attorney can advise you in creating an estate plan that sets up the most favorable way to distribute your assets including real estate.
Reference: Daily Republic (March 3, 2018) “All Things Real Estate: Living trust best way to pass house to children.”
