Probate can be a lengthy and expensive process, which is why a lot of families want to avoid it at all costs. If you can avoid probate, you can save a lot of time, distribute assets faster and reduce the emotional anguish of your loved ones.
Unfortunately, it may not always be possible to avoid probate entirely, but there are certain assets that can bypass the probate process. Here’s what you need to know.
What assets are subject to probate?
In California, estates worth more than $184,500 generally have to go through probate. Probate is typically unavoidable if an estate owner dies without a will, but probate can also be necessary if there is a will but the owner has property subject to probate.
Examples of these assets include but are not limited to:
- Real estate
- Bank accounts
- Personal property, such as cars, art and furniture
- Stocks and bonds
- Intellectual property
The number and value of available assets will also determine the length of probate. That said, another reason to save assets from probate is to complete the process faster.
Which assets can avoid probate?
Several types of assets can bypass the probate process in California. Here are some of your options:
- Living trust assets: Property held in a living trust bypasses probate and transfers directly to the beneficiaries. If your loved one is still alive, encourage them to put property in a living trust so distribution is both faster and easier.
- Joint tenancy property: Real estate or other assets owned in joint tenancy with right of survivorship automatically pass the assets to the surviving owners. Probate is not necessary for this transfer.
- Transfer-on-death accounts: Also known as payable-on-death accounts, these are bank accounts, securities or vehicle registrations that allow the named beneficiary to claim the assets without having to go through probate.
- Retirement accounts: These accounts typically have designated beneficiaries, and ownership transfers are automatic.
Check your loved one’s estate and financial documents to see if they have assets you can save from probate. Even if they are already gone, avoiding probate for at least several assets can help shorten the process.
Furthermore, consider speaking to an attorney who understands probate inside and out. They can guide you through the process, help you understand your options and protect your family’s best interests.