Probate is the legal process through which a deceased person’s assets are distributed to beneficiaries or heirs and debts are paid off under court supervision. However, not all assets are subject to probate. It’s essential to understand which assets may be subject to probate and which ones can bypass the process altogether. Let’s delve into the types of assets typically subject to probate:

1. Solely Owned Real Estate: Real property owned solely by the deceased, such as a house, land, or vacation home, is usually subject to probate. If the property is not held in a trust or does not pass by survivorship, it will likely go through probate to transfer ownership to beneficiaries.

2. Solely Owned Personal Property: Tangible personal property, including vehicles, jewelry, furniture, artwork, and household items, may be subject to probate if there is no designated beneficiary or joint owner. These assets are typically included in the deceased’s estate and distributed according to the terms of their will or state intestacy laws.

3. Bank Accounts Without Designated Beneficiaries: Bank accounts held solely in the deceased’s name without payable-on-death (POD) or transfer-on-death (TOD) designations are subject to probate. The funds in these accounts become part of the estate and are distributed according to the terms of the will or state laws if there is no will.

4. Investment Accounts Without Beneficiary Designations: Investment accounts, such as stocks, bonds, and mutual funds, held solely in the deceased’s name without designated beneficiaries or transfer-on-death (TOD) instructions may be subject to probate. These assets are typically included in the estate and distributed according to the will or state laws.

5. Retirement Accounts Without Designated Beneficiaries: Retirement accounts, such as IRAs, 401(k)s, and pensions, that do not have designated beneficiaries or payable-on-death (POD) or transfer-on-death (TOD) instructions are subject to probate. The funds in these accounts become part of the estate and are distributed according to the terms of the will or state laws.

6. Life Insurance Policies Payable to the Estate: Life insurance proceeds payable to the deceased’s estate rather than designated beneficiaries may be subject to probate. If the policy does not have named beneficiaries or payable-on-death instructions, the proceeds become part of the estate and are distributed through probate.

7. Business Interests Held Solely: Sole proprietorships, partnerships, and shares in closely held corporations owned solely by the deceased may be subject to probate if there are no transfer-on-death (TOD) designations. These business interests become part of the estate and are distributed according to the terms of the will or state laws.

While these assets are typically subject to probate, it’s essential to note that certain types of assets can bypass probate altogether. Assets held in joint tenancy with rights of survivorship, assets with payable-on-death (POD) or transfer-on-death (TOD) designations, assets held in trusts, and certain types of retirement accounts and life insurance policies with designated beneficiaries can avoid probate and transfer directly to beneficiaries. The Davis Schilken, PC team can help you understand how to structure your assets to minimize probate and ensure a smooth transfer of assets to beneficiaries. Give our office a call to schedule a no obligation meeting with one of our skilled attorneys (303)670-9855.