Probate assets are assets not bequeathed to a beneficiary and require probate court to transfer ownership to next of kin. This includes insurance policies, bank accounts, and co-owned property. Personal property and retirement funds also require probate action. Non-probate assets, such as trust accounts, do not require probate. It is important to consult legal professionals due to varying probate laws.
Probate assets are all assets attached to an estate that are not specifically bequeathed to a beneficiary. In order for ownership of assets to be transferred to the next of kin, those assets must first go through a probate process, conducted under the auspices of a probate court that has jurisdiction in the area where the deceased had a permanent residence. Different types of estates may be subject to probate action, depending on the laws that apply where the will is finally tested.
One of the most common examples of probate business are insurance policies where the estate of the deceased is listed as a beneficiary under those policies. Before insurance companies honor the terms of the policy, the court must recognize the estate administrator as authorized to receive such funds and add them to the estate in accordance with instructions left by the deceased. The same is true for any bank or brokerage account where the property is named as the beneficiary. In jurisdictions where community property laws apply, the court may order that half the value of such property be passed on to the surviving spouse or legally recognized partner.
In situations where the deceased had co-ownership of a certain property, that part of the property must also be verified before it is transferred to the estate or to another party as determined by the court. With trial assets of this type, any provision within the title contract that pertains to the survival of the property when one of the owners dies is generally considered binding, and the court will order the asset to be processed in accordance with those provisions.
There are many other types of probate assets that require the attention of an probate court. Personal property of the deceased that is not specifically willed to a beneficiary, as well as the balance in any type of retirement fund such as an individual retirement account or Keogh plan where the estate is named as the recipient, will require some type of probate action . This is in contrast to assets that are considered non-probate assets, such as a bank account held in trust for a minor child or investments that are bequeathed to a specific charity. Since probate laws vary somewhat from one jurisdiction to another, it is important to consult legal professionals regarding the exact circumstances that may require an probate court to act before any property belonging to a recently deceased person can be assigned to family members or other persons of interest.
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