What Deeds Avoid Probate In Salt Lake?

Discover how to sidestep probate in Salt Lake City with specific deeds like JTWROS and TOD. Save time, money, and ensure smoother property transfers.

What Deeds Avoid Probate In Salt Lake?

Navigating the world of probate might seem like delving into a labyrinth of legal jargon, intricate regulations, and an avalanche of paperwork. But hold tight — it’s not as daunting as it sounds, especially when you’re well-informed about specific procedures and legal tools that can help you sidestep probate altogether. In Salt Lake City, certain types of deeds play a pivotal role in simplifying this process and ensuring a smoother transfer of property after a loved one’s passing.

Understanding Probate

Probate is the legal process through which a deceased person’s will is validated, and their estate is administered. This includes paying off debts and distributing the remaining assets to rightful beneficiaries. While probate has its merits — such as ensuring orderly asset distribution — it can be time-consuming, costly, and subject to public record.

Why Avoid Probate?

There are several reasons why you might want to avoid probate:

• Time and Cost: Probate proceedings can drag on for months or even years, racking up legal fees and court costs.
• Privacy: Probate is a public process. Anyone can access court records to see what assets were left and who inherited them.
• Simplicity: By avoiding probate, you streamline the asset-transfer process, making it easier for your loved ones during an already difficult time.

Types of Deeds That Avoid Probate

In Salt Lake City, specific types of deeds can bypass the probate process altogether. Understanding these deeds and how they work can save you significant time, money, and heartache.

1. Joint Tenancy with Right of Survivorship (JTWROS)

A Joint Tenancy with Right of Survivorship is a way to hold title to property jointly with one or more persons. When one of the joint tenants dies, their interest in the property automatically passes to the surviving joint tenant(s) without the need for probate.

Example Scenario: Imagine you and your spouse own a home as joint tenants with right of survivorship. Upon your spouse’s death, you automatically become the sole owner of the property without having to go through probate.

Statute Reference: According to Utah Code § 57–1a-3, this right of survivorship must be explicitly stated in the deed to avoid probate.

2. Tenancy by the Entirety

Reserved exclusively for married couples, tenancy by the entirety means that both spouses have an undivided interest in the property. Upon the death of one spouse, the surviving spouse gets full ownership of the property automatically.

Example Scenario: Suppose you and your spouse jointly own a rental property as tenants by the entirety. If your spouse passes away, you become the sole owner without any probate proceedings.

Statute Reference: This form of ownership is also recognized under Utah law, specifically Utah Code § 57–1–5.1.

3. Transfer on Death (TOD) Deed

A Transfer on Death Deed allows you to designate a beneficiary who will automatically inherit the property upon your death, bypassing probate.

Example Scenario: Let’s say you own a piece of land and want your daughter to inherit it after your death. By creating a TOD deed, the property will transfer to her directly when you pass away, without the need for probate.

Statute Reference: Utah Code § 75–6–402 details the implementation of TOD deeds.

4. Life Estate Deed

In a life estate deed, you (the “life tenant”) retain the right to live in or use the property for the rest of your life. Upon your death, the property automatically transfers to the designated remainderman, avoiding probate.

Example Scenario: You own a house and want to ensure your son inherits it, but you also want to live there for the rest of your life. Through a life estate deed, you maintain your living rights while guaranteeing the house will pass directly to your son upon your death.

Statute Reference: Life estate deeds are established under Utah Code § 57–1–1.

Common Misconceptions About Deeds and Probate

1. “All Deeds Avoid Probate”

Not all deeds will automatically avoid probate. Understanding the specific types of deeds that do avoid probate is crucial for effective estate planning.

2. “Probate is Always Bad”

While probate can be cumbersome, it also serves essential functions like settling debts and resolving disputes.

3. “I Don’t Need a Lawyer”

Although some deeds might seem straightforward, consulting with a probate lawyer ensures that everything is filed correctly and legally, and helps prevent future legal challenges.

FAQs About Deeds and Probate in Salt Lake

1. What is the advantage of a TOD deed over a joint tenancy?

A TOD deed offers more flexibility. You retain full control of the property and can change the beneficiary at any time without affecting your ownership rights.

2. Can I change a joint tenancy to a TOD deed?

Yes, you can change a joint tenancy to a TOD deed, but it will require creating a new deed and recording it with the county.

3. Do life estate deeds have any downsides?

Life estate deeds are relatively inflexible. The life tenant cannot sell or mortgage the property without the remainderman’s consent, which could complicate matters if situations change.

4. Can I dissolve a Tenancy by the Entirety without my spouse’s consent?

No, Tenancy by the Entirety requires the consent of both spouses for any changes, including dissolving the deed or selling the property.

5. What happens if the beneficiary predeceases me?

If a beneficiary in a TOD deed predeceases you, the property will need to be revisited in terms of its designation. It’s advisable to name contingent beneficiaries to avoid complications.

Conclusion

Understanding the different types of deeds that can avoid probate in Salt Lake City is an invaluable part of effective estate planning. By wisely choosing the appropriate deed — be it a Joint Tenancy with Right of Survivorship, Tenancy by the Entirety, Transfer on Death Deed, or Life Estate Deed — you can streamline the asset transfer process, ensure privacy, and provide peace of mind for your loved ones.

To speak with a probate lawyer, call Attorney Jeremy Eveland at (801) 613–1472.

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Jeremy Eveland 8833 S Redwood Rd West Jordan Utah 84088 (801) 613–1472

The information contained in this article is for information purposes only and is not legal advice. For legal advice, hire a competent lawyer in your jurisdiction.