Do All Assets Have To Go Through Probate?
Finder Law Serves Clients Across Jefferson City, Columbia, and Central Missouri
Probate is the legal process in which a will is proven valid by a court of law. Once that is done, the executor of an estate can begin paying off any debts still outstanding by the deceased and then distribute assets to the heirs named in the will. However, not every asset has to go through probate.
Assets that are only in the name of the deceased are subject to probate. This could include homes, bank accounts, cars, stocks, etc. If their name alone is on the title or deed, the asset cannot be distributed to heirs prior to the probate process being completed. Even personal property like furniture, jewelry, artwork, etc. must go through probate as well despite not coming with titles or deeds.
Some assets, like life insurance and retirement accounts, can designate beneficiaries. These do not have to go through probate and can be directly distributed upon death. There can be exceptions to this, such as, the beneficiary dying before you. In that case, it would be considered part of the estate and must be probated. Similarly, if the beneficiary is incapacitated, the court may determine it must go through the probate process.
Jointly owned property can go directly to the other owner upon your death. These assets do not need to go through probate. This is a great way to make sure the person you want to have your property can avoid probate. For example, if you want your child to receive your home upon your death, you can name them as a co-owner on the deed.
A Revocable Living Trust is another way to avoid the probate process. This document will allow you to retain control of all your assets while you’re alive, but then specify who you want to receive your assets upon your death. Assets in a living trust do not have to go through probate. You can always add or remove assets from this document as well during your lifetime.
Determining the best type of estate planning for your specific needs can be confusing, but by hiring an experienced estate planning attorney, they will be able to guide you through the process. Daniel Finder at Finder Law, LLC has over a decade of experience in estate planning, so he is more than capable of making the planning process as easy as possible. We treat each of our clients and their needs individually, so we can create a unique plan for you.
