Three Estate Planning Strategies to Keep Assets Out of an Estate

One of the most common goals in estate planning is to ensure that assets pass efficiently to loved ones while minimizing delays, costs, and unnecessary court involvement. For many families, this means keeping certain assets out of the probate estate whenever possible.

There are several legally sound strategies that can help accomplish this goal when used thoughtfully and as part of a comprehensive estate plan.

Why Keeping Assets Out of an Estate Matters

When assets pass through an estate, they are often subject to:

• Probate delays

• Court oversight

• Public disclosure

• Administrative costs

By planning ahead, individuals can reduce complications and make the transfer of assets smoother and more private.

👉 Related reading: When Should You Update Your Estate Plan?

1. Using Trusts to Transfer Assets Outside of Probate

Trusts are one of the most effective tools for keeping assets out of an estate.

When assets are properly transferred into a trust:

• The trust—not the individual—owns the assets

• Probate can often be avoided

• Distribution instructions remain private

Both revocable and irrevocable trusts can serve this purpose, depending on the planning goals and level of control desired.

Trusts are commonly used to manage:

• Real estate

• Investment accounts

• Family assets intended for long-term protection

👉 Related reading: What Is an Irrevocable Trust?
👉 Related reading: Do I Have to Be Rich to Create a Trust?

2. Naming Beneficiaries on Accounts and Policies

Many financial assets allow for beneficiary designations, which enable them to pass directly to a named individual upon death.

Assets that commonly use beneficiary designations include:

• Retirement accounts

• Life insurance policies

• Certain bank and investment accounts

When properly designated, these assets typically pass outside of the estate, bypassing probate altogether.

It is important to review beneficiary designations regularly to ensure they align with the overall estate plan.

3. Joint Ownership With Rights of Survivorship

Another strategy for keeping assets out of an estate is holding property in joint ownership with rights of survivorship.

When one owner passes away:

• The surviving owner automatically inherits the asset

• The asset does not pass through probate

This strategy is commonly used for:

• Bank accounts

• Real estate

• Certain personal property

However, joint ownership can have legal and tax implications, so it should be used carefully and intentionally.

Coordination Is Key

While each of these strategies can be effective on its own, they work best when coordinated as part of a broader estate plan. Improperly aligned documents or outdated beneficiary designations can create confusion or unintended results.

A comprehensive estate plan often includes:

• A will

• Trust documents

• Powers of attorney

• Healthcare directives

👉 Related reading: What Is the Purpose of Durable Power of Attorney Documents?

Start Your Estate Plan With Confidence

Keeping assets out of an estate requires more than individual tactics—it requires a clear strategy tailored to your goals and circumstances.

Hyde Legal Group helps individuals and families evaluate estate planning strategies that promote efficiency, privacy, and long-term protection.

👉 Schedule a consultation to discuss how to structure your estate plan effectively.