Probate property is owned by the estate of the deceased and subject to probate proceedings. Not all assets owned by the deceased are probate property. Probate proceedings occur when the person dies without a will or without a valid will. Some properties are not subject to probate, and individuals often use various pre-death legal methods to avoid probate. Personal property, proceeds and other intangible assets may not be subject to probation.
Probate property is real and personal property owned by the estate of the deceased and which is subject to probate proceedings. The purpose of requiring certain assets to be audited is to legally transfer them from the name of the deceased to the beneficiaries. Not all assets owned by the deceased are probate property because the legal transfer occurs automatically. Some jurisdictions may also exclude property that is worth less than a specified amount in its probate laws or due to the nature of the property between the deceased and an heir. Property held in a trust does not belong to the deceased at the time of death and is often not classed as probate property.
When a person dies, heirs or beneficiaries often have to initiate probate proceedings to transfer title to real estate and transfer ownership of other types of property. Probate proceedings occur when the person dies without a will or without a valid will, and the judge must distribute the estate according to local laws. Where a will exists, the estate is often distributed according to the wishes of the deceased. The object of the proceeding is a testamentary asset. Some jurisdictions require the payment of an estate tax before granting rights to an executor or administrator, based on the value of the probate property.
Some properties are not subject to probate, and as a result, individuals often use various pre-death legal methods to avoid probate. One of the most popular ways for individuals to avoid probate is to place all or most of the property in a trust. The trustee is considered the owner of the property, not the deceased. Joint ownership of assets is another method often used to avoid probate proceedings. Property is often transferred to the surviving spouse or other heir without probate by right of survival or as a co-tenant owning the entire property.
Personal property, proceeds and other intangible assets may not be subject to probation. For example, life insurance proceedings are not often considered probate because they are paid to a named beneficiary upon the death of the policyholder. Non-resident deceased may own property, bank accounts and other intangible assets in other jurisdictions. An probate court will often not include the property in that case as probate property. Deceased residents may own property in other jurisdictions and it is often considered probate property.
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