Will Your Home Get Stuck in Probate? 5 Simple Ways Missouri Families Avoid It

In Missouri, probate usually takes 12 to 18 months, and the house is often the asset that gets stuck. While a court oversees the estate, your family may be paying the mortgage, taxes, insurance and utilities on a home nobody lives in, and they can't sell it until the court allows it. 

The good news is that most of this is avoidable with a few simple steps you can take today. Here's what probate really costs and the easiest ways Kansas City families keep their home out of it.

What is probate?

Probate is the court process that settles someone's estate after they pass away. A judge appoints a personal representative, creditors get a chance to file claims, and only then can property be transferred to the heirs. In Missouri, creditors have six months to file claims, so even a simple estate can't wrap up overnight.

It happens whether or not there's a will. A will tells the court who gets what. It doesn't keep the house out of court.

What probate can cost your family

Missouri law sets a fee schedule for the attorney and the personal representative, based on the value of the property they handle (RSMo 473.153):

• 5% of the first $5,000
• 4% of the next $20,000
• 3% of the next $75,000
• 2.75% of the next $300,000
• 2.5% of the next $600,000
• 2% of anything over $1,000,000

Here's what that looks like: if the court orders a $300,000 home sold, that schedule works out to about $8,800 in fees. The personal representative can claim the same amount, and that's before court costs, appraisals and months of carrying costs on the house. Many estimates put total probate costs at 3% to 8% of an estate's value.

5 ways to keep your home out of probate

1. Record a beneficiary deed

This is the simplest tool for most Missouri homeowners. A beneficiary deed (also called a transfer-on-death deed) names who gets your home when you die. You keep full ownership while you're alive. You can still sell, refinance or change your mind, and the beneficiary has no say until then.

The key detail: the deed must be recorded with the county before you pass away. A signed deed sitting in a drawer doesn't count. Kansas offers a similar transfer-on-death deed, so this works on both sides of State Line.

2. Set up a revocable living trust

You move your home and other assets into a trust you control. When you die, the person you named as successor trustee hands everything out without going to court. Trusts cost more up front but work well if you own several properties, have a blended family, or want more control over how and when heirs inherit.

3. Own the home jointly with right of survivorship

When a home is titled as "joint tenants with right of survivorship," the surviving owner automatically keeps it. That's common for married couples. Adding a grown child to the title is riskier, because their creditors, divorce or tax situation can affect your home. Talk to an attorney before you do it.

4. Add beneficiaries to every account

Bank accounts can be payable-on-death (POD), and investment accounts and vehicles can be transfer-on-death (TOD). Retirement accounts and life insurance pass by beneficiary designation. These take a few minutes to set up and skip probate entirely. Review them after every marriage, divorce, birth or death in the family.

5. Know the small estate shortcut

If everything left in the estate after those transfers is worth $40,000 or less, Missouri allows a simpler small estate affidavit, which can be filed 30 days after death. Once the house is handled with a beneficiary deed, many estates qualify.

Already inherited a house stuck in probate?

You're not alone, and you have options. Jolene works with families every year who need to sell an inherited home. She can tell you what the house is worth today, which repairs are worth making, and how to time the sale with the court process. She can also recommend local estate attorneys she trusts.

Protect your family this week

A beneficiary deed is usually a short, inexpensive document, and it could save your family a year of court dates and thousands of dollars. If you're not sure how your home is titled, start there.

Call Jolene for a free, no-pressure conversation about your home's value and your options, and she'll connect you with a trusted local estate attorney.

This article is general information, not legal advice. Jolene is a real estate agent, not an attorney. Talk with a Missouri or Kansas estate planning attorney about your situation.