When planning your estate, you may understand that if you don’t have a Will, the state will assume control of your assets before distributing them under state law in a process known as Probate. However, it’s important to understand that Probate is not dependent on whether or not you have a Will, but rather on how your assets are held, as those with a Will must still undergo Probate. As such, it’s necessary to familiarize yourself with what assets go through the Probate process and what you can do if you wish to avoid this. The following blog explores what you should know about these matters and why it’s in your best interest to connect with a Medina County, Ohio probate lawyer who can guide you through these complex issues.
What Is Probate?
Probate is the process by which the courts oversee the distribution of assets after someone’s passing. This is done to ensure any outstanding creditors are paid and the property of the deceased is distributed in accordance with the terms and conditions of their Will. This process also involves retitling the assets from that of the deceased to the name of the heir.
Unfortunately, this can be a complex, long, and expensive process for your Beneficiaries to endure. As such, understanding what assets go through this process is critical to planning your estate to avoid this process or familiarizing yourself with the assets you’ll need to handle if you are appointed as the Executor of a loved one’s estate.
What Assets Do Not Have to Go Through the Probate Process?
Typically, assets that do not have to go through Probate include assets held in Trust Funds, those that are jointly owned, or any assets with a named Beneficiary.
For example, if you own the title to your car and include it in your Will, it will go through the Probate process as it must be retitled to that of the heir. However, if you created a Trust Fund and held the vehicle in the Trust, it would not have to go through the Probate process. This is because assets held in a Trust are not considered a part of your estate.
Additionally, if you have a retirement account or life insurance policy, for example, you may have the option to name a Beneficiary. By naming one, this asset will avoid Probate because the holder of this account must immediately transfer ownership to the Beneficiary upon your passing.
Unfortunately, this process can be incredibly complex. As such, you may be unsure where to start if planning your estate or appointed as the Executor of someone else’s. Luckily, the team at Krause Law is easy to assist. We understand how complicated these matters can be, which is why we are here to assist you. Connect with us today to discuss these circumstances in further detail.
