What Assets are Subject to Probate?

When a loved one dies, their assets will likely have to go through probate, unless there is an exception (such as they were held in a trust). Probate is the legal process of completing a person’s financial affairs after their death. It is used to distribute a deceased person’s assets to their heirs or beneficiaries and to settle any debts or taxes owed. Be aware that probate is often a long and complicated process.

Most assets are subject to probate, but some are not. This typically depends on how the assets are titled or owned. Here’s a look at what you need to know.

Assets Subject to Probate

The following assets will need to go through probate:

• Solely owned assets. These are assets that were owned solely in the deceased person’s name without any designated beneficiary. Most personal property falls under this category and may include jewelry, furniture, and collectibles that were solely owned by the deceased. Vehicles, bank accounts, and real estate in just the deceased’s name would also fall under this category.
• Real estate. If the real estate is solely owned or if the deed does not have survivorship rights, then it may be subject to probate.
• Assets owned as tenants in common. If the deceased owned property with another person as tenants in common, their share of the property is subject to probate. Tenants in common do not automatically pass their share to the other owner upon death, unlike joint tenancy.
• Assets without a named beneficiary. Life insurance policies and retirement accounts without a named beneficiary may be subject to probate.
• Business interests. Sole proprietorships, shares in closely held corporations, and partnership interests might need to go through probate if they are not jointly owned or do not have a transfer-on-death designation.

Assets Not Subject to Probate

Certain types of assets do not have to go through probate, such as the following:

• Property held in tenancy by the entirety. This is common for married couples. The asset passes automatically to the surviving spouse.
• Jointly owned property with right of survivorship. These assets pass directly to the surviving owner.
• Assets with named beneficiaries. Life insurance, retirement accounts, and annuities with a valid beneficiary designation will go directly to that beneficiary without probate.
• Revocable living trust assets. Assets placed in a trust are not subject to probate and are distributed according to the trust’s terms.

Contact Our West Palm Beach Probate Attorney Today

Probate can be a complicated process. What assets need to go through probate, and which ones do not?

Get the guidance you need from West Palm Beach probate attorney Brian K. McMahon, P.A. You’ll need to deal with creditors and possibly even disputes, so count on us to manage these issues quickly and efficiently. Schedule a consultation today by filling out the online form or calling (561) 658-1789. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.