5 Legal Ways to Transfer Property Without Probate

Written by Ingrid M. Carlin, Attorney at Davis Miles, a LegalShield Provider Law Firm

‍

Let's talk about one of the most common questions I get from clients: "How can I transfer my property to my children ‍without going through probate court?"

It's a great question. Here's why people ask it: When you have a Will, it usually needs to go through probate court after you pass away. This means your executor might need to hire an attorney and wait for legal permissions before distributing anything. Not exactly what most people want to leave their loved ones dealing with.

The good news? There are several ways to transfer property in New Mexico (and similar options exist in other states—though you'll want to check with a local attorney for specifics). Let me break down your options:

‍

1. Direct Deed transfer 

Think of this as handing over the keys—permanently. You can deed your property directly to your child or chosen recipient while you're still alive. But here's what you need to know:

• Your recipient might face higher income taxes if they ever sell.
  ‍
• Once you give it away, there's no taking it back without their approval.
  ‍
• The property could be at risk if they face financial troubles.
  ‍
• You lose say over what happens to it (even if they give it to that son-in-law you're not too fond of).  

‍

‍

2. "Transfer Upon Death" Deed   

This is like saying "It's yours, but not yet." In New Mexico, you can file a deed that transfers property when you pass away. The perks?

• The property stays yours to use, sell, or borrow against.
  ‍
• You can change your mind.
  ‍
• Your recipient gets better tax treatment.
  ‍
• It stays protected from their creditors (but not yours).

3. Trust option 

Think of the trust option as creating a secure container for your property. It's especially great if you have minor children. You get:

• Privacy (unlike probate, which is public)
  ‍
• Immediate transfer of control when needed
  ‍
• Flexibility in how and when things are distributed
  ‍
• Protection from certain creditors
  ‍
• Professional management if you want it

Just watch out—if you have a mortgage, check the fine print before transferring to a trust.

4. LLC route

This means creating a business that owns your property. Your chosen recipients become business owners. Heads up though—in New Mexico, this might trigger some unexpected property tax changes. Definitely chat with your tax advisor about this one.

5. Life Estate Deed   

This is like saying "It's yours after I'm done with it." You keep living there and acting as owner, but the property transfers automatically when you pass. It's simpler than joint ownership, but harder to undo than some other options. You'll want solid tax advice before going this route.

A lawyer can be your guide

Here's the bottom line: There's no one-size-fits-all solution. Your best path depends on your unique situation—your family dynamics, tax considerations, whether you might need long-term care, and how much control you want to keep.

Estate planning doesn't have to be overwhelming. The key is having someone you trust to guide you through the process—someone who takes the time to understand your unique family situation, answer your questions, and help you make informed decisions with confidence.  

As estate planning attorneys, we've seen how peace of mind comes not just from having the right documents in place, but from knowing you've made the best choices for your family's future. Whether you have questions about property transfers or want to explore your estate planning options, remember that's exactly what we're here for—to help turn complex legal decisions into clear, confident choices for you and your loved ones.

Learn more about LegalShield Membership options and contact us today if you have questions!

__________________________________________________________________

Davis Miles has proudly served as a LegalShield provider law firm since 2004, helping members navigate their legal needs across Arizona and New Mexico. With over 60 attorneys practicing in diverse areas of law, from estate planning to business law, the firm has earned a reputation for providing personalized, high-quality legal services. Their commitment to excellence is reflected in their numerous accolades, including being consistently rated among the Best Law Firms by U.S. News & World Report. The author, Ingrid Carlin, concentrates her practice in the areas of family, consumer, collection, estate and real estate law. She serves clients throughout the state of New Mexico. Since 2003 the most significant part of her practice has been providing front line service to the members of LegalShield, Inc. every day.  

Pre-Paid Legal Services, Inc. (“PPLSI”) provides this blog as a public service and for general information only.  The information made available in this blog is meant to provide general information and is not intended to provide legal advice, render an opinion, or provide a recommendation as to a specific matter. The blog post is not a substitute for competent legal counsel from a licensed professional lawyer in the state or province where your legal issues exist, and you should seek legal counsel for your specific legal matter. All information by authors is accepted in good faith.  However, PPLSI makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information.  The materials contained herein are not regularly updated and may not reflect the most current legal information.  No person should either act or refrain from acting on the basis of anything contained on this website.  Nothing on this blog is meant to, or does, create an attorney-client relationship with any reader or user.  An attorney-client relationship may be formed only after the execution of an engagement letter with an attorney and after that attorney has confirmed that no conflicts of interest exist.  Nothing on this website, or information contained or transmitted by this website, is intended to be an advertisement or solicitation.   Information contained in the blog may be provided by authors who could be a third-party paid contributor.

PPLSI provides access to legal services offered by a network of provider law firms to PPLSI members through membership-based participation. PPLSI is not a law firm, and its officers, employees or sales associates do not directly or indirectly provide legal services, representation, or advice.