5 Steps to Help You Keep Assets Out of Probate

Estate planning involves a wide range of considerations. For many people, keeping assets out of probate is an important goal. Doing so can avoid expenses such as probate fees and help ensure that assets are quickly available for the use of loved ones.

When leaving a legacy for your family is important, proactive estate planning should be on your to-do list. An experienced estate planning attorney can help you implement strategies to keep assets out of probate while protecting your wealth now and in the future.

Tips for Avoiding Probate in Iowa

Avoiding probate means keeping assets out of the formal court processes of administering an estate and distributing inheritances. Some reasons to avoid probate include:

  • Ensuring loved ones have access to assets quickly. Probate can be lengthy, with some estates taking months or years to close. Meanwhile, your family may need access to assets to cover day-to-day expenses or other needs.
  • Reducing costs. Probate can also be expensive, especially when disputes or large estates complicate the process.
  • Protect privacy. Probate proceedings are typically a matter of public record. Passing assets on outside of probate may be preferable if you want to maintain confidentiality.

1. Establish a Trust

When you move assets into a trust, you change their ownership. You no longer own them—the trust does. You can set up a trust that allows you to benefit from assets during your lifetime and ensures the remaining assets are available to your beneficiaries when you pass away. Because your estate doesn’t own the assets in the trust, they would not need to go through probate.

2. Name Beneficiaries on Your POD Accounts

Many financial accounts are payable-on-death accounts. This means you can name one or more beneficiaries for those accounts; the assets associated with the accounts automatically transfer to the named beneficiaries upon your death without probate.

Checking and savings accounts, many pension and retirement accounts, and some investment accounts are POD. To determine if your financial account is a POD account, ask your bank if you can complete a beneficiary form. You may also be able to complete beneficiary designations in an online portal if you manage your account via the internet.

3. Plan Proactively for Joint Ownership

Many assets owned jointly come with a right of survivorship. This arrangement is prevalent in real estate. For example, if a married couple jointly owns a home and one of the spouses passes away, full ownership of the property may automatically transfer to the remaining spouse if there is a right to survivorship. The real estate would not need to go through probate in such cases.

Understanding how a right of survivorship impacts any assets or property you own is critical to estate planning, especially when you want to ensure that a spouse or another co-owner is protected in the future.

4. Gift Assets During Your Lifetime

One strategy to pass on assets outside of probate is to start giving them to your loved ones during your life. Gifting is a common estate planning tactic that can help reduce tax burdens and ensure beneficiaries enjoy assets earlier. However, you do have to balance gift tax considerations with this strategy. In 2025, you can give up to $19,000 in value to each person before paying gift taxes. However, you should always consult legal and financial professionals when transferring large amounts of money or transferring ownership of valuable assets.

5. Update Your Estate Plans Regularly

Reviewing and updating estate plans is essential in keeping assets out of probate. Anyone who has owned a house for over a few years knows that stuff piles up—you might buy a home with plenty of storage and realize a decade later that you have too many things to fit that space. That’s true on a larger scale, too, and estate plans that covered all your assets several years ago may leave critical property or investments out now. Without any action on your part, those assets might end up in probate if you pass away.

Take time to read through your estate plans and ensure all your significant assets are included. If you have new assets, update your plans with an estate lawyer. You might also review beneficiary designations on your accounts, adding new beneficiaries if needed or removing those who are no longer relevant.

Connect With an Experienced Estate Attorney

Estate planning can be complex, and keeping your assets out of probate requires knowledge of Iowa estate law and the many tools you can use to protect your wealth and pass it on to loved ones. Every person has a unique situation, and a lawyer can provide guidance about what options might be best in your case so you can move forward with proactive estate planning strategies.

If you want to leave a legacy for your loved ones, keep your assets out of probate, or protect assets now and in the future for your use, experienced estate lawyers can help. Connect with the team at Scott Shoemaker & Associates to start your estate plan. Reach out at 319-379-2007 to make an appointment.