It’s important to know which properties need to go through probate when managing an estate. In probate, a court oversees how to distribute a person’s assets after they pass away.
Types of properties that need probate
If someone owned homes or land by themselves, these properties typically go through probate. This rule also applies to personal items that don’t have a chosen person to receive them. If the properties or accounts had joint ownership but didn’t have clear instructions on who gets what after one owner dies, they too must go through probate.
Certain types of Investment accounts
Investment accounts like stocks or bonds that don’t have a named person to inherit them must go through probate. Having legal oversight ensures the estate gives these assets out as the deceased wanted. This process helps avoid disagreements among potential inheritors and keeps the distribution of the estate fair.
Properties that don’t need probate
Some assets skip the probate process, which makes things easier and quicker for the inheritors. Jointly owned properties with survivorship rights automatically pass to the living owner. Accounts like life insurance and retirement funds also go directly to the named beneficiaries without probate.
Trust-held properties
Assets in a living trust do not go through probate. The person who created the trust has already explained how to distribute them, which speeds up the process. This setup leads to quicker solutions and less stress for the inheritors.
Navigating estate planning with legal help
Planning for how your estate will handle your assets after you’re gone is an essential step in managing your estate. By taking the time now to organize and clarify your wishes, you can provide a smoother probate experience for those you leave behind.
