Probate

Assets That Go Through Probate

There are certain assets that must go through probate without a living trust. Learn here what these assets are, and why they must go through probate.

To know how to avoid probate, you must know what assets go through probate, as well as what estates go through probate.

Does every estate have to go through probate?
The size of the estate determines whether it will be probated. In most states if real property (land, or home) exceed $20,000, or if the total estate including personal effects exceed $20,000 to $100,000, the estate will go through probate. If your estate is under the allowed limit, a simple affidavit procedure may be substituted for the lengthy and costly probate process. However, since most people have a home or land valued over $20,000, few people are spared from the probate process.

Do all assets have to go through probate?
Not everything you own will automatically have to go through probate. For example, a jointly owned asset that transfers to the surviving spouse will generally avoid probate while the spouse is alive. However, after the surviving spouse's death, the asset may have to go through a probate process. Also, assets with named beneficiaries such as insurance policies, IRAs and annuities, will avoid probate as long as the beneficiary is alive.

You can keep your assets from going through probate by transferring your assets into your trust. You will not lose control of your assets when you do this, you are simply transferring ownership. If you do this now, while you are alive, you eliminate the need for your assets to go through probate and eliminate the problems for your family after you are gone.