Beyond a Will – 7 Alternatives to Probate

For New Yorkers with substantial assets—whether real estate, business interests, or fine art—a simple will often falls short. While a will is important, it does not avoid probate, the court process required to validate a will and oversee the transfer of assets.

Probate in New York can be slow, costly, and public. It can also disrupt the management of unique assets like investment property, a family business, or an art collection that requires special handling. Fortunately, there are sophisticated strategies that go beyond a will and provide privacy, efficiency, and control.

Here are 7 alternatives to probate that are especially relevant for high-net-worth families:

1. Revocable Living Trusts

A revocable trust is the cornerstone of most modern estate plans. By titling your real estate, art, and other assets in the trust, you avoid probate entirely. The trust allows you to:

• Appoint a successor trustee to step in immediately.

• Provide instructions for managing illiquid assets, such as an art collection or co-op shares.

• Preserve privacy—unlike probate, which is a public court record.

  
  

2. Joint Ownership with Right of Survivorship

For married couples, owning property jointly with rights of survivorship can ensure a seamless transfer of ownership. However, for investment real estate or co-ops, joint ownership can create complications—particularly with tax planning or creditor protection. This is a tool that must be used with caution.

3. Beneficiary Designations

High-value retirement accounts, annuities, and life insurance policies can pass directly to named beneficiaries. Keeping these designations current is critical, especially after marriage, divorce, or the sale of an asset. For large estates, trusts are often named as beneficiaries to provide creditor protection or preserve wealth for multiple generations.

4. Transfer-on-Death Deeds

Certain states allow transfer-on-death deeds for real estate, which may be a great option for some clients with out-of-state vacation properties. It provides a cost-effective way to avoid ancillary probate proceedings.

5. Lifetime Gifting

Gifting is a powerful strategy for high-net-worth individuals, especially when combined with tax planning. For art collectors, transferring works to heirs, trusts, or charitable foundations during life can reduce estate tax exposure while ensuring proper stewardship of the collection. Gifting must be carefully structured to comply with IRS valuation requirements and avoid unintended tax consequences.

6. Business Succession Planning

For those who own operating businesses, probate can create damaging uncertainty. A well-designed succession plan—through trusts, buy-sell agreements, or ownership transfer provisions—ensures continuity and avoids court interference. This is especially important when businesses own or manage real estate.

7. Private Foundations and Charitable Trusts

Many art collectors and philanthropically inclined families establish private foundations or charitable trusts. These vehicles not only avoid probate but also provide a structured way to manage and display collections, support charitable initiatives, and reduce estate tax liability.

The Takeaway

For families with significant wealth, a will is rarely enough. Probate can delay the sale of property, complicate the transfer of art, and expose your family’s affairs to the public. By combining tools such as trusts, gifting strategies, and business succession planning, you can preserve privacy, reduce taxes, and ensure your legacy is managed according to your wishes.

Working with an experienced estate planning attorney familiar with both New York probate and high-value estates is essential. Every family—and every collection—is unique. The right plan can ensure a smooth transition while protecting the people and passions that matter most.