When making a will, an individual should know the difference between a probate property and a non-probate property. The property will be distributed among heirs and beneficiaries after their death; therefore it is important to know such differences. Assets which the court distributes among the heirs are called as probate assets; whereas the assets which go straight to the beneficiaries and don’t have to go through the process determined by the court are known as non-probate assets.
As the probate process is lengthy and includes steps like; hiring an executor administrator, assets collection, bills payment, tax filing, property distribution among heirs and filing of final account; people attempt to steer clear of it and focus on non-probate properties.
If the decedent is the sole owner of the property, it is called as probate assets. Following are included in probate assets:
- Personal property comprising of jewelry, car, furniture, and any other expensive item.
- Bank account belonging completely to the decedent.
- Partnership, limited liability company or corporation interests.
- Life insurance policy or brokerage account in which the deceased or estate are listed as the beneficiary.
- Real property owned by decedent or seized as a common tenant.
Non probate assets incorporate: