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Many Mississippi property owners try to simplify things for their families by using tools like trusts or transfer-on-death deeds to avoid probate. While these strategies can be effective in certain situations, recent developments are revealing a common and frustrating problem—especially when real estate is involved.

We are increasingly seeing cases where a person places real property into a trust or uses a transfer-on-death deed, believing probate will not be necessary. After the owner passes away, the heirs attempt to sell the property—only to learn that title insurance companies may refuse to insure the title.

This often comes as a surprise. Even when property transfers outside of probate, there are still unanswered legal questions: Are all heirs properly identified? Are there outstanding creditor claims? Under Mississippi law, the probate process is what formally resolves these issues by establishing heirs and providing notice to creditors.

Without probate, title insurance companies may view the transaction as too risky. As a result, heirs may be forced to delay the sale, open an estate anyway, or wait a period of time—sometimes up to three years—before the title becomes insurable.

The lesson is clear: while trusts and transfer-on-death deeds can be useful tools, they do not always eliminate the need for probate when it comes to marketable, insurable title—particularly if the property is going to be sold shortly after death.

If your goal is to truly avoid probate complications, it is important to have a plan that accounts for these real-world issues. If you have questions about your current estate plan or are dealing with inherited property that cannot be sold, we invite you to contact our firm to discuss your options and develop a strategy that works for your situation.