Probate refers to the court-supervised process that distributes a deceased person’s estate. While some assets bypass probate, others require it to ensure proper distribution. Understanding which assets go through probate can help families prepare for the process.
Real estate
Real estate typically passes through probate unless held in joint tenancy or in a living trust. Property owned solely by the deceased, or held as tenants in common, will usually require probate for proper transfer. Joint tenancy property, however, avoids probate since ownership automatically shifts to the surviving owner.
Financial accounts
Bank accounts, retirement accounts, and investment funds may also need probate, but only if someone has not named a beneficiary. When accounts include payable-on-death (POD) or transfer-on-death (TOD) designations, they bypass the probate process.
Without such instructions, these financial assets become part of the probate estate. It’s important to review these designations regularly. This ensures that they reflect current intentions and avoid unnecessary probate complications.
Personal property and other valuables
Personal items, such as jewelry, vehicles, and collectibles, often fall under probate. These assets, if owned solely by the deceased, require the court’s supervision to distribute them. Items like life insurance policies or pensions, however, may bypass probate if the policyholder named beneficiaries.
Different factors can shape probate outcomes
Probate depends on how a person organizes their estate. It also depends on whether assets include beneficiary designations. Probate serves to ensure assets get transferred according to the law, but some careful planning can help simplify the process. Beneficiaries should familiarize themselves with estate guidelines to understand which assets might pass through probate.