When your parents pass away with no will or trust, are there options to avoid probate?

Question

My parents recently passed away. They had a FHA reverse mortgage but did not have a will/trust. We need some guidance on possible next steps. I am one of 7 children and we agreed to collectively determine next steps but we don't fully understand our options. Can we transfer the title on the deed to a next of kin? Are there options to avoid probate?

Sally Bergman · Answer

You need to contact a probate attorney ASAP.  You cannot transfer title or sell the house without going through a probate process.  In the meantime, the reverse mortgage holder can foreclose on the house.  Do not delay!

Howard E. Kane · Answer

I'm sorry about your loss.  Unfortunately there are no options to avoid probate.  The reverse mortgage went into default as soon as your parents passed. Most reverse mortgage companies will give the family some latitude before setting the default process in motion, however, there is no time to waste.  The probate court will appoint a trusted family member as administrator after a probate petition is filed.  The administrator can then refinance the property or sell it.  Reverse mortgages are not assumable.  Good luck with this.

James L. Arrasmith · Answer

In California, if a person dies without a will or trust, their estate will typically go through the probate process. However, there are some exceptions that may allow heirs to avoid probate. Here are some options to consider: 
 
Small estate affidavit: If the estate is valued at $166,250 or less (as of 2021), heirs may be able to use a small estate affidavit to transfer property without going through probate. 
 
Spousal property petition: If the deceased person was married and their spouse survives them, the surviving spouse may be able to use a spousal property petition to transfer property without going through probate. 
 
Joint tenancy: If the deceased person owned property with someone else as joint tenants, the property will automatically transfer to the surviving joint tenant without going through probate. 
 
Transfer on death deed: If the deceased person owned real estate, they may have been able to use a transfer on death deed to transfer the property to a designated beneficiary without going through probate. 
 
It's important to note that these options may not be available in all situations, and the specific circumstances of each case can impact whether probate can be avoided. It's recommended to consult with an attorney who specializes in probate law to discuss your options.

Q: When your parents pass away with no will or trust, are there options to avoid probate?