Everything You Need To Know About Probate
When it comes to topics on estate planning and the creation of wills, you have probably heard the term probate mentioned. Many property owners try to make the necessary efforts to avoid subjecting their estate to probate. With the help of a probate law attorney, you will know how to protect your property from probate. Here is some basic information on probate law.
What's Probate?
This is a legal process that arises when you die. It involves providing evidence in court showing that a will of a deceased person is valid. It also entails providing an inventory of the deceased's property, having their property appraised, and paying debts and taxes.
After all these stages, the deceased's property is distributed according to the deceased's will or as per state law in cases where there is no will. Probate involves court appearances by attorneys and a significant amount of paperwork. The court and legal fees are derived from the estate property.
Which Assets Are Subject to Probate?
Examples of assets that are subject to probate include assets left out of a trust and individual assets. While the owner of a property may create a trust, this doesn't mean their property will not be subject to probate when they die. Many deceased property owners fail to include additional assets they acquire in their trust. These assets are subject to probate.
Individual assets are all property titled in the deceased's name without beneficiary and co-owner designations. These include stocks, bonds, investment accounts, bank accounts, vehicles, airplanes, boats, and real estate. They may also be personal property that is not valuable, like memorabilia, artwork, and electronics.
Which Assets Don't Go Through Probate?
In most states, a certain amount of property doesn't go through probate. For example, in California, property worth up to $100,000 can be distributed without probate. A simple transfer is also used for property that is left to a surviving spouse.
Property that is not in the will and is passed through a living trust or joint tenancy will not go through the probate process. Other property that doesn't pass through probate includes retirement accounts for which a beneficiary has been named and funds kept in a payable on death bank account.
Life insurance proceeds, securities that are registered in a transfer-on-death form, U.S. savings bonds, and pension plan distributions are also not subjected to the probate process. The best way to distinguish which assets are subject to probate and which are not and how to protect your property from probate is to consult a probate law attorney.
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