Does a Will Avoid Probate in Missouri? The Truth You Need to Know

If you think having a will means your estate will skip probate in Missouri, you might be in for a surprise. Many people assume a will allows assets to transfer automatically, avoiding legal red tape—but that’s not entirely true. While a will plays a crucial role in estate planning, it doesn’t necessarily eliminate probate. Instead, it helps direct the probate process. So, how can you avoid probate altogether? Let’s dive into what probate is, how a will affects it, and strategies to bypass it in Missouri.

Understanding Probate in Missouri

What is Probate?

Probate is the legal process of distributing a deceased person’s assets and settling debts. It ensures that beneficiaries receive what’s left after liabilities are covered. Probate can be time-consuming, costly, and stressful for loved ones left behind.

When is Probate Required in Missouri?

In Missouri, probate is required when:

• The deceased owned assets solely in their name (without a named beneficiary or co-owner).
• The total value of probate assets exceeds Missouri’s small estate threshold ($40,000).
• There is a dispute over the distribution of assets.

What Assets Bypass Probate?

Certain assets automatically transfer to beneficiaries and don’t need to go through probate, including:

• Jointly owned property with rights of survivorship
• Life insurance policies with named beneficiaries
• Retirement accounts (IRA, 401k) with designated beneficiaries
• Payable-on-death (POD) bank accounts
• Transfer-on-death (TOD) securities and vehicle titles

The Role of a Will in the Probate Process

A will is a legal document that states who should inherit your property after death. However, a will does not avoid probate. Instead, it guides the probate court in distributing assets according to your wishes.

Related article for you:
Does a Will Avoid Probate in Arizona? Here’s What You Need to Know

Common Misconceptions About Wills and Probate

Many people mistakenly believe:

• A will prevents probate (it does not; it only helps direct probate).
• A will covers all assets (only probate assets—not those with designated beneficiaries).
• A will makes estate distribution quick and simple (it still requires court approval).

If you want to avoid probate, additional estate planning strategies are necessary.

Strategies to Avoid Probate in Missouri

1. Establish a Revocable Living Trust

A revocable living trust is one of the best ways to avoid probate.

How It Works:

• You create a trust and transfer ownership of assets to it.
• As the trustee, you maintain control over the assets while alive.
• Upon your death, a successor trustee distributes assets without court involvement.

Benefits:

• Avoids probate entirely.
• Provides privacy (unlike probate, which is public record).
• Allows for smooth asset management if you become incapacitated.

2. Use a Beneficiary Deed (Transfer-on-Death Deed)

Missouri allows beneficiary deeds, which automatically transfer real estate upon death without probate.

How It Works:

• You file a beneficiary deed with the county recorder’s office.
• The deed names a beneficiary who inherits the property upon your death.
• The property skips probate and transfers directly to the beneficiary.

3. Set Up Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts

These designations allow certain financial assets to transfer automatically upon death.

Examples:

• POD bank accounts: Your beneficiary can withdraw funds immediately after your passing.
• TOD securities: Stocks, bonds, and investment accounts can be transferred without probate.
• TOD vehicle titles: Missouri allows vehicle owners to name a TOD beneficiary.

4. Use Joint Ownership with Rights of Survivorship

Co-owning property with joint tenancy with rights of survivorship (JTWROS) or tenancy by the entirety (for married couples) ensures the property passes to the co-owner automatically upon death.

Pros:

• Avoids probate.
• Simple and inexpensive setup.

Cons:

• Not suitable for all assets.
• Risky if relationships change (e.g., divorce or family disputes).

5. Take Advantage of Missouri’s Small Estate Process

Missouri offers a simplified probate process for estates valued under $40,000.

How It Works:

• Instead of formal probate, an affidavit can be filed to claim assets.
• This process is faster and less expensive than full probate.

Common Mistakes and How to Avoid Them

Failing to Fund a Living Trust

A trust only avoids probate if assets are properly transferred into it. Many people create trusts but forget to retitle assets accordingly.

Neglecting to Update Beneficiary Designations

Outdated beneficiaries (e.g., an ex-spouse) can cause unintended inheritances. Regularly review designations on retirement accounts, insurance policies, and financial accounts.

Assuming a Will Covers Everything

A will only directs probate assets. To avoid probate, you need trusts, TOD/POD designations, or joint ownership.

Overlooking Beneficiary Deeds and TOD/POD Designations

These simple tools can significantly reduce probate complications but are often ignored in estate planning.

Conclusion

While having a will is essential, it does not prevent probate in Missouri. Probate can be time-consuming and expensive, but there are ways to bypass it. Using tools like revocable living trusts, beneficiary deeds, POD/TOD designations, and joint ownership, you can streamline asset transfer and reduce stress for your loved ones. To ensure your estate is set up properly, consider consulting with an estate planning attorney in Missouri.

Taking proactive steps today can save your family time, money, and legal headaches down the road!