Probate involves a complex process, especially in New York. Understanding which assets require probate helps families plan effectively and navigate this legal procedure more smoothly. In New York, the probate process verifies the deceased’s will and distributes assets according to that will or, if there is no will, according to state law.
Assets that go through probate
Probate includes assets the deceased owned solely that do not have a designated beneficiary. These may include real estate, personal property, and bank accounts without a payable-on-death designation. If the deceased held an asset only in their name without joint ownership or a beneficiary, that asset must go through probate.
Real estate and probate
Real estate that the deceased person owned solely requires probate in New York. This could include a house, land, or any other type of property. If the property is jointly owned with a right of survivorship, it passes directly to the co-owner and avoids probate. However, if the deceased owned the property alone, probate is necessary to transfer ownership.
Personal property subject to probate
Personal belongings, such as jewelry, vehicles, furniture, and other valuable items, must go through probate if the deceased owned them solely. Items like family heirlooms or valuable collectibles without joint ownership or a beneficiary require the probate process for distribution.
Financial accounts without beneficiaries
Bank accounts, investment accounts, or retirement accounts without a named beneficiary require probate. To avoid this, designate beneficiaries for financial accounts, allowing them to bypass probate and transfer directly to the intended recipient.
Probate-exempt assets
Assets with designated beneficiaries, such as life insurance policies, jointly owned property, and accounts with transfer-on-death or payable-on-death clauses, typically avoid probate. Joint accounts and assets held in a trust also bypass probate, streamlining the distribution process.
Navigating probate can be challenging, but understanding which assets require probate can make the process more manageable. Proper planning helps minimize complications and ensures assets get distributed as intended.