Which Assets Go Through Probate?

When a loved one passes away, understanding which assets go through probate can be crucial for managing their estate. Individually owned assets are among the most common types to enter the probate process. These are assets solely owned by the deceased without any designated beneficiary or joint owner. Examples include bank accounts, real estate, and vehicles. For instance, if the deceased had a savings account solely in their name, this account would typically need to go through probate to be transferred to the heirs.

Similarly, any real estate property solely owned by the deceased, such as a family home, would also require probate proceedings to change ownership.

The probate process for individually owned assets ensures that the deceased's debts are paid and the remaining assets are distributed according to their will or state law if no will exists. This process can be time-consuming and may involve court supervision to ensure all legal requirements are met. It's essential to clearly understand which assets fall into this category to prepare adequately for the probate process and avoid potential delays or legal complications.

Assets That May Avoid Probate

Jointly Owned Property

One way to avoid the lengthy probate process is through jointly owned property. When property is held in joint tenancy with the right of survivorship, the surviving owner automatically inherits the deceased's share without the need for probate. This type of ownership is common among spouses, where both names are on the deed or title. For example, if a married couple jointly owns a home, the surviving spouse would inherit the entire property upon the other's death, bypassing probate entirely.

Community property with the right of survivorship, applicable in some states, also allows for a seamless transfer of assets to the surviving spouse. This arrangement simplifies the inheritance process and provides immediate access to the property, which can be particularly beneficial during a difficult time. Understanding these ownership structures can help in estate planning to minimize the assets that need to go through probate.

Beneficiary Designations

Another effective method to avoid probate is through beneficiary designations on accounts such as life insurance policies and retirement accounts. These designations allow the account holder to specify who will receive the assets upon their death, ensuring a direct transfer without court intervention. Payable-on-death (POD) and transfer-on-death (TOD) accounts function similarly, allowing the account holder to name beneficiaries who will inherit the funds directly.

Trust Assets

Trusts are another powerful tool for avoiding probate. Assets held in a revocable or irrevocable trust do not go through probate, as the trust itself owns the assets, not the individual. When the trust creator (grantor) passes away, the trustee manages the distribution of assets according to the terms of the trust. This process is typically faster and more private than probate, as it does not involve court supervision.

Trusts can be tailored to meet specific estate planning goals, such as providing for minor children, managing assets for beneficiaries with special needs, or ensuring that assets are protected from creditors. By placing assets in a trust, individuals can have greater control over how their estate is managed and distributed, while also reducing the time and expense associated with probate.

Contact Our Skilled Attorneys at Collins Family & Elder Law Group

Navigating the probate process can be challenging, but you don't have to do it alone. At Collins Family & Elder Law Group, we specialize in helping families in Monroe, NC, manage the complexities of probate and estate planning.

Let us help you honor your loved one's wishes and secure your family's future. (704) 289-3250