What’s the Difference Between Probate and Non-Probate Assets?
Managing an estate after someone’s death can be a complex process, and the situation can get even more confusing when probate vs. non-probate assets come into the picture.
Understanding the difference between the two is crucial to ensuring that assets are handled appropriately and passed to the proper heir or beneficiary. An experienced Tulsa probate lawyer can help you navigate these distinctions and ensure that your estate is handled correctly.
Keep reading below to learn all the key differences between the two.
What Is a Probate Asset?
A probate asset is any property or asset owned solely by the decedent at the time of their death. These assets become part of the decedent’s estate, and the probate process is required to transfer ownership of these assets. Some common examples may include:
- Bank accounts owned solely by the deceased
- Personal property, such as jewelry, furniture, art, collectibles, and more
- Automobiles owned solely by the deceased
- Real property owned solely by the deceased or as tenants in common
- Business interests
Probate assets have no joint ownership, and there are no “payable on death” or other legal clauses that allow them to pass to a designated beneficiary after the owner’s death. If you are unsure which of your assets may be subject to probate, an experienced probate attorney can review your estate and help you understand what to expect.
What Is a Non-Probate Asset?
Non-probate assets are assets and property that are owned jointly, owned by a trust, or include some beneficiary designation. Upon the owner’s death, these assets can pass directly to a beneficiary without going through the probate process. Avoiding the lengthy and confusing probate process is one big benefit of non-probate assets.
Some common examples of non-probate assets include:
- Life insurance policy with a beneficiary other than the deceased or their estate
- Real property or automobiles that are jointly titled
- Bank accounts with a payable-on-death clause
- Retirement accounts with a beneficiary designation
Property placed into a revocable trust or irrevocable trust during the owner’s lifetime also becomes a non-probate asset. That is because the property can pass to a beneficiary without going through probate. If you’re looking to maximize the non-probate assets in your estate, a Tulsa probate lawyer can help you explore your options and put the right plan in place.
Distribution of Probate vs. Non-Probate Assets
Probate is the legal process of managing someone’s estate after their death. The probate process is the method that must be used to transfer ownership of probate assets.
For instance, suppose a man owns a car that is titled only in his name. Upon his death, he leaves the car to his sister in his will. In order to transfer ownership to the sister, the probate process must be used.
However, imagine the same man has a retirement account with $100,000 in it. The retirement account has a beneficiary designation, and the man has designated his sister to inherit the account upon his death. The account will automatically transfer to the sister without going through the probate process.
Understanding how these two types of assets are distributed differently is something an experienced probate lawyer in Tulsa can walk you through in detail.
Get Help With Your Assets From a Tulsa Probate Attorney
Protecting your assets and your family is not something that should be taken lightly. An experienced probate lawyer can help you understand all the differences between probate and non-probate assets. Having a comprehensive estate plan in place requires having plans for both your probate and non-probate assets.
The team at Helton Law Firm can help you put together a personalized plan that helps ensure your assets will be distributed according to your wishes. Contact our probate attorneys in Tulsa at (918) 928-7104 to schedule an initial consultation and get started.
