What is Probate and is The Estate subject to the Probate Process?
Probate is the process in which the court determines the financial legal status of the estate and overseas the payment of claims, disbursement of assets and dissolution of the estate.
Unless the Estate is considered to be a “Small Estate” and can be administered under those rules, all estates go through Probate. The question is what gets admitted to the probate process. If a will or trust or other means to identify the heir or beneficiary then that is admitted to probate and the court follows those instructions. If there are assets that are not identified in the will, or there is no will or other means to easily identify the heirs and beneficiaries, then those assets are subject to probate administration via the courts.
Non-probate assets (not inclusive):
- Property that is held in joint tenancy or as tenants by the entirety
- Bank or brokerage accounts held in joint tenancy or with payable on death (POD) or transfer on death (TOD) beneficiaries
- Property held in a trust
- Life insurance or brokerage accounts that list someone other than the decedent as the beneficiary
- Retirement accounts
Probate assets (not inclusive):
- Real property that is titled solely in the decedent's name or held as a tenant in common
- Personal property, such as jewelry, furniture, and automobiles
- Bank accounts that are solely in the decedent's name
- An interest in a partnership, corporation, or limited liability company
- Any life insurance policy or brokerage account that lists either the decedent or the estate as the beneficiary