The first thing to understand is that not all assets go through probate. This is because in New York, certain types of assets fall under the probate category. Non-probate assets are those that don’t go through probate, but still belong to the deceased. The following is a breakdown of probate assets and their respective uses. The first type of asset is called “probate” assets, and is the most commonly held in the name of a deceased person.
Non-probate assets flow outside the estate. This type of asset is usually used for Medicaid and nursing home planning. This type of asset does not go through probate if it is titled in the name of the executor, which is the person appointed to administer the estate. In this case, the executor files the original will with the court. In New York, the executor of the estate is named as the legal representative of the estate.
The process of sorting through an estate can take a great deal of time. It can be very tedious to sift through all the accounts and property. It can also be confusing to determine if your spouse’s assets are subject to probate or not. If you have any questions about the process, you should contact a New York probate attorney today. Then you can sort through the assets in accordance with their respective status.
There are two types of assets that are exempt from probate. Non-probate assets pass directly to the beneficiary of the deceased person’s will, while probate assets pass to the named beneficiaries of the document. Non-probate assets are typically governed by a contract or have a beneficiary designation. A spouse will generally hold a house title as “husband and wife.”
Probate also affects assets that have beneficiary designations. Assets that are payable on death, such as life insurance policies and annuities, will go through probate. If more than one person owns the same property, it’s best to leave it to the surviving owner, which avoids the probate process altogether. Living trusts can be very useful for holding property, but do not necessarily prevent assets from going through probate.
Probate assets are only transferred through a probate estate when the deceased person has made a will. Other assets will pass through the estate directly to the beneficiary, without going through probate. For example, life insurance proceeds are payable to the estate, which then distributes them to the beneficiaries of the will. If a deceased person leaves no Will or designates an executor as executor, his or her assets will go through probate.
Property held in joint tenancy or tenants by the entirety is not subject to probate. This is a common practice when two spouses own a family home. Since joint tenancy ownership is not restricted to spouses, it’s a great option for people with young children. Another option is to set up a testamentary trust for a beneficiary. Assets transferred into a testamentary trust will go through probate, but a retirement account is not probate property.
A probate asset is an asset that does not have a beneficiary designation or joint tenants with rights of survivorship. It goes through a probate court in order to be distributed according to the instructions of the Will or state law. Some examples of assets that go through probate include real estate, stocks, and a bank account titled in the individual’s name alone. It’s important to consider both types of assets when planning your estate. If you have any assets, such as stocks, you’ll need to update those designations.
One type of asset that does not go through probate is a living trust. A living trust is not subject to probate and is often used to place a life insurance policy or other liquid assets into a trust. Living trusts also provide the beneficiaries with access to their liquid assets without going through probate. In addition to avoiding probate, a living trust allows you to avoid the burden of paying estate taxes.