What Assets Require to be Listed for Probate ?

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What Assets Require to be Listed for Probate ?

Determining whether or not an estate has assets that are not subject to probate will save your time and money.

The following are various types of assets that qualify as non-probate assets.

If you have been named the administrator or executor of an estate, you will need to take an inventory of property and possessions and determine what’s subject to probate and what is not.

Only the assets treated “probate property” should be listed on forms filed with the probate court.

Probate Assets Versus Non Probate Assets

Probate is the legal method for paying a dead person’s debts and distributing money and property to successors. It starts with a petition filed in probate court and progress through a series of steps, including inventorying the estate, notifying creditors, paying bills, filing taxes, and obtaining court approval to distribute property to heirs.

If you have been appointed as a personal representative also known as executor or administrator of a probate estate, one of your first tasks is to figure out what the deceased person owned. Some of those assets are treated as probate property or assets that will be distributed to beneficiaries based on the conditions of a will or as per the state law if there is not a will

Other assets are non-probate property. These assets ignore the probate process and go directly to beneficiaries or co-owners, in spite of what the will says.

A non-probate/probate property list can help you to keep track of what’s subject to probate and show whether probate is even necessary.

What is Non probate Property ?

As non-probate assets are not part of the probate process, they are not listed with the probate court.

Non-probate property includes :

Properties titled in the name of a trust or appointing a trust as beneficiary.

Specifically to avoid probate, many people set up living trusts. The trustee named within the trust is permitted to carry out the trust’s instructions, as well as distributing trust assets to beneficiaries.

Property with a named beneficiary. Some examples are life insurance policies, IRAs, 401(k)s, and pension.
Bank accounts with beneficiaries.

If they have a payable on death (POD) designation then these do not go through probate. Other property such as real estate or vehicles is non-probate property if there is a Transfer On Death (TOD) designation.

Property owned together/jointly, with survivorship rights. This suggests that, if one owner dies, the opposite owner automatically gets the deceased owner’s interest in the property. Married couples often own their home this way. Your state laws may also provide a right of survivorship, if you live in a community property state.

Once you have identified the assets that pass outside of probate, the rest of the decedent’s assets are probably part of the probate estate.

What Are Probate Assets ?

In most states, the private representative should list all probate assets with their values and file the list with the probate court. You can also imagine of this as a list of assets for the will. The assets like bank accounts, are easy to put a value on. Others may need an appraisal, like antiques, jewelry, and collectibles.

Probate assets include :

Real estate, vehicles, and different titled assets owned only by the deceased person or as a tenant in common with someone else.

Tenants in common don’t have survivorship rights. The owners can transmit their share of the property to someone else.

Personal possessions. Household items go through probate, along with clothing, jewellery and collections. The inventory should include the children’s personal belongings that remain after death.

In some states, probate is not required if the estate’s value is below a certain dollar amount. Some states also have a simplified probate method for small estates or when all property is transferred to a surviving spouse. But even when probate is not required, going through the process can have advantages.

Sorting through property and accounts can be tedious and it’s not always easy to tell what’s subject to probate and what is not. It is best to get legal advice if you have questions or aren’t sure what property to list with the probate court.