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When you die, estate planners say, one of the finest gifts you can leave your heirs is a plan for avoiding probate. 

Probate is a legal process that distributes a dead person’s assets and settles their debts. Many affluent households go to great lengths to avoid it. 

The probate process can eat up many months and thousands of dollars, depending on the size and complexity of the estate, the probate laws in your state, and other factors. 

“Probate is something everybody wants to avoid, because of the extreme cost,” said Craig Parker, assistant general counsel at Trust & Will. “It’s going to be multiple thousands of dollars. And if you need legal help, it’s going to be $10,000 or more.” 

In terms of time, “it can take months or even years to take it through the probate court,” he said. 

Here, then, are some tips for avoiding probate. 

Aim for a ‘small estate’ 

Estates can generally avoid probate court if they are small.  

The definition of “small” differs by state. The threshold can range from around $25,000 in assets to $100,000 or more, according to a Justia survey.  

If you die with assets below the small estate threshold in your state, then your survivors can probably avoid full probate.  

“If you can keep it under that number, then the process is going to be smooth and simple,” Parker said. 

To settle a small estate, a qualified spouse, child or other loved one typically fills out a small estate affidavit. 

“That’s kind of a one-page document that says, ‘I’m the guy who swears he’s going to take care of this stuff,’” said Brian Whitlock, a CPA and estate planning attorney in Chicago.  

You say you’re worth more than $100,000? 

Here are some ways to convert large assets into a small estate. 

Name beneficiaries 

Your estate might comprise many different assets that are in your name when you die.  

But if you designate beneficiaries, those assets pass to other people upon your death, and they are no longer part of your estate. 

You can name a beneficiary on a retirement account, an insurance policy, a brokerage account, savings or checking account, among others. When you die, the asset passes to the beneficiary. 

“These are all called non-probate items when you list beneficiaries on them,” said Brijinder Grewal, director of tax, trust and estates at Charles Schwab.  

If you don’t name a beneficiary, then an asset in your name generally becomes part of your estate for probate purposes.  

Estate planning experts recommend that you name contingent beneficiaries, in case your primary beneficiary dies: Your spouse, followed by your child, for example, or a child and grandchild. You want someone alive to receive the asset when you die.  

Consider a living trust 

A living trust is a legal document that allows you to manage your assets while you are alive and dictates what happens to them when you die.  

A trust helps you avoid probate, because assets you place in the trust won’t count toward your probate estate.  

But remember: Once you’ve opened a trust, you need to move assets into the trust to make it effective. 

“Take larger accounts and title them in the name of the trust,” Whitlock said.  

Some assets, including IRAs, can’t go into a trust. Many other assets can. 

One big estate-planning mistake, Grewal said, is to create a trust and then neglect to move assets into it. If you leave large accounts in your own name, you can still trigger probate when you die. 

Decide what to do with your house 

For many middle-class families, there’s no bigger asset than the family home. 

And there are ways to keep your home out of probate court, estate planners said. 

One is a “transfer-on-death” deed, which changes the title of your home so that it passes to a beneficiary upon your death, avoiding probate. Many states allow transfer-on-death deeds, according to Trust & Will. 

Another option is to deed your house into a trust. You can name yourself as the trustee, managing the home until you die and it passes to a successor trustee.  

Consider joint ownership – but be careful 

Another way to avoid probate is to put a second person’s name on your asset. With “joint tenancy,” when you die, the joint tenant generally becomes full owner of the asset.  

“It automatically passes to the surviving tenant at death,” Whitlock said. “All they have to do is present a death certificate.” 

But joint tenancy can be a risky move while you’re still alive. If your joint owner gets sued, or divorced, or goes bankrupt, the joint asset may be pulled into a legal quagmire. 

“Joint tenancy can be dangerous,” Whitlock said. 

Clean up your accounts 

When planning your estate, experts say, look closely at how your accounts are titled.  

If you have a living trust and want to avoid probate, make sure that high-value accounts belong to the trust, not to you.  

If your spouse or partner dies, make sure you take their name off your accounts, and transfer any of their assets into your own name, or that of your trust. 

Review how your accounts are titled every few years. 

“The titling itself is really the roadmap to estate administration,” said Michael Deering, a partner at Mowery & Schoenfeld Wealth Management in Chicago. “And you want to plan your route before you pass.” 

Communicate your estate plans 

Perhaps the biggest step you can take to prepare your heirs for your passing is to share your estate plan.  

If you’ve created a living trust and named trustees and beneficiaries, let them know. If you have a plan for avoiding probate court, explain it to your heirs. 

“Maintain an asset inventory for your kids, where you say where your accounts are and who are your contacts at those institutions,” Grewal said.  

“Dialogue is one of the most powerful estate-planning tools,” he said.