The probate process can be complicated. It can seem like a tangled web of red tape and legal requirements. Unfortunately, those navigating the probate process are often those who have just lost a loved one. Fortunately, however, not all property goes through probate. In fact, when a decedent has put certain planning measures in place, little to none of their assets may actually go through probate. This can save loved ones a great deal of time and energy not to mention it allows heirs and beneficiaries easier and more timely access to those assets left to them.
Does All Property of the Deceased Pass Through Probate?
It is rarely the case where all of the property of a deceased individual will pass through probate. In fact, it is probably easier to talk about what property will not go through probate and say that everything else will go through probate. Here are some of the key assets of a deceased individual that will pass outside of probate.
For starters, any property that is held in joint tenancy with rights of survivorship will pass outside of probate proceedings. The interest in the property held by the decedent will automatically pass to the surviving joint tenant. This will happen without any sort of involvement with the probate court.
Also, property listed with payable on death registration will avoid probate and instead go directly to the named beneficiary on the asset. Payable on death accounts can include bank accounts and other financial accounts. The decedent, however, must have registered the account as payable on death and named a beneficiary.
Similar to payable on death accounts, accounts that have named beneficiaries will also pass directly to the beneficiaries without probate. These can include some substantial assets. For instance, life insurance proceeds where there is a named beneficiary will pass directly to that beneficiary. Retirement account proceeds will also pass to named beneficiaries outside of probate.
Trusts are another big thing to consider when looking to see what assets will avoid probate. Assets held in a trust will pass outside of probate and will instead pass to the named beneficiaries according to the terms of the trust. Trusts are, in fact, great tools for probate avoidance. You can transfer a wide range of asset types into a trust and they will avoid probate. Avoiding probate means time saved, money saved. It also means more privacy. Probate proceedings are a matter of public record. Those assets that pass outside of it will avoid this and remain as a private transaction.
Estate Planning Attorney
Are you interested in saving your loved ones time, money, and stress after you pass away? Then talk to the knowledgeable estate planning team at Monk Law about how you can have the bulk of your estate avoid probate. We are here to help you plan for a future you want for yourself and your loved ones. Contact Monk Law today.