Probate v. Non-Probate: What Is the Difference?
When planning your estate it is important to understand the difference between probate and non-probate assets. Probate is the process through which a court determines how to distribute your property after you die. Some assets are distributed to heirs by the court (probate assets) and some assets bypass the court process and go directly to your beneficiaries (non-probate assets).
Posted on April 25, 2022
The probate process includes filing a will and appointing an executor or administrator, collecting assets, paying bills, filing taxes, distributing property to heirs, and filing a final account. This can be a costly and time-consuming process, which is why some people try to avoid probate by having only non-probate assets.
Probate assets are any assets that are owned solely by the decedent. This can include the following:
- Real property that is titled solely in the decedent's name or held as a tenant in common
- Personal property, such as jewelry, furniture, and automobiles
- Bank accounts that are solely in the decedent's name
- An interest in a partnership, corporation, or limited liability company
- Any life insurance policy or brokerage account that lists either the decedent or the estate as the beneficiary
Non-probate assets can include the following:
- Property that is held in joint tenancy or as tenants by the entirety
- Bank or brokerage accounts held in joint tenancy or with payable on death (POD) or transfer on death (TOD) beneficiaries
- Property held in a trust
- Life insurance or brokerage accounts that list someone other than the decedent as the beneficiary
- Retirement accounts
When planning your estate, you need to take into account whether property is probate property or non-probate property. Your will does not control the distribution of non-probate property. Check the ownership of your property and your accounts to make sure jointly owned property will be distributed the way you want it to. It is also important to review your beneficiary designations.
Contact us today to determine whether your property is being distributed the way that you want it to.
More from our blog…
Don’t Yet Want Your Heirs to Know About Your Assets? Use a Quiet Trust in Your Estate Plan
Trusts are great tools for leaving assets to your heirs while maintaining control over their access to those assets. In many cases, you would tell [...]
What Is the Difference Between a Springing and Non-Springing Power of Attorney?
A power of attorney is a document that grants various powers and responsibilities to a trusted third party or “agent” who can act on your [...]
Who Are Parties to an Estate?
When people pass away, their assets go through probate — a legal process that distributes the person’s assets after death. The parties to an estate [...]
No Will? You’re Putting Your Kids at Risk
Many people delay the conversation or thoughts of having to prepare a will. Confronting the possibility of one’s death is not easy. However, as the [...]
Recent blog posts
