Do All Wills Go Through Probate?

Do All Wills Go Through Probate?

There is a widespread misunderstanding regarding wills, estate handling, and the probate procedure. Many individuals believe that a will must always go through the probate process. However, the truth is that not all Wills and assets require probate. There are several reasons why a Will might not need to go through the difficult probate procedure. So when precisely does a Will require probate?

Do All Wills Go Through Probate?

No, not everyone will require a court hearing. The majority of will do; however, there are a few situations in which a Will may evade the entire procedure. Even though the actual guidelines may change based on the state where you reside, some aspects of property and assets may be universal.

Minor Estates: 

Practically every state has a procedure for dealing with small estates. Even if your state doesn’t enable you to avoid the probate procedure, a streamlined approach is typically available, with less paperwork and little court oversight. The overall worth is the deciding factor of the estate. If any of the following apply in your state, you could be able to escape probate:

  • To claim property, beneficiaries must submit a court-issued affidavit.
  • A financial institution will accept an affidavit to transfer ownership from a surviving spouse or dependant.

Assets held jointly: Assets held under a shared tenancy are very prevalent. Suppose you have a property jointly owned with rights of survivorship with your spouse, children, business partner, or anybody else. In that case, the property will automatically pass to the remaining owner upon your death. The catch here is a requirement of probate if both owners passed away simultaneously or if the surviving owner also passed away without adding another joint owner to the title.

Property in a Revocable Living Trust: 

Anything contained in a Revocable Living Trust that owns assets would not be subject to probate. Living trusts completely escape probate. Instead, they contain a Terms of Trust Agreement that dispenses with probate and enables assets to pass to beneficiaries immediately.

It’s fairly unusual to draft a “Pour-Over Will,” which serves as a safety net for any assets you might not have included in your living trust. Upon your passing, the Pour-Over Will automatically transfer assets to the Trust. Be aware that probate would be necessary for this situation.

Property with Named Beneficiaries: 

You can avoid probate by naming beneficiaries or setting up Payable on Death (POD) or Transfer on Death (TOD) accounts. Any account or insurance will have an immediate transfer with a stated beneficiary upon your passing.

When Does a Will Enter the Probate Process?

Your Will often goes through probate after your passing to a proper following of instructions and intentions. However, probate also happens if you pass away without making a will or other estate plans. One refers to this as intestate death. Another situation where there is a requirement of probate is when there are incorrect names of the beneficiaries, reject the inheritance, or are otherwise ineligible, such as when a beneficiary dies before you do.

When can there be an execution of a will without probate?

You may set up an estate that avoids probate with proper planning. Probate may be expensive, time-consuming, and stress-inducing for your loved ones. Along with these disadvantages, the probate process might result in significantly higher legal bills and estate taxes. And the sense of privacy is the ultimate benefit of avoiding probate. Probate is a public record subject, so you might want to look into ways to avoid it if you want some or all of your estate to remain private (including whose assets belong to whom).

Remember that one can follow any of the following approaches to avoiding probate successfully:

  • Creating and financing a Revocable Living Trust – The utilization of the assets you leave in your Living Trust while you are living. Still, they transfer directly to the beneficiaries of your Trust when you pass away, avoiding probate.
  • Designating beneficiaries on your life insurance policies may streamline and simplify the process of transferring the funds without going through probate after your death. Make sure your beneficiaries are current and still applicable.
  • Using retirement funds with beneficiary designation features to avoid probate – Certain retirement accounts allow you to choose a beneficiary, which results in the account amount being transferred to that individual upon your demise.
  • Real estate ownership as joint tenants – There are two owners under the definition of joint tenancy or joint tenants with the right of survivorship. When the original owner dies, the property immediately goes to the survivor.

What Takes Place If You Avoid Probate?

Creditors have the right to continue seeking monies they feel the estate owes if the probate procedure is not completed correctly. The probate process effectively closes any debts an estate is liable for. If you skip the probate process, you can be held personally responsible for any fees.

There is no other method for beneficiaries to acquire legal ownership of property unless it has been deliberately set up to avoid probate before the owner’s demise, even if, theoretically, no one will come knocking on your door asking for a Will to go through probate.

There are exceptions to this in several states. For instance, in some places, if the property’s taxes are paid and it is not sold, the family may continue to possess it even after the decedent’s passing. To learn more, see the state legislation in your area.

Conclusion:

Probate can be messy and difficult, but comprehending the procedure and the end aim could seem less stressful. Although there are many good reasons to avoid probate, including emotional and financial ones, there are methods to structure up your estate such that it primarily (or completely) avoids probate.

More To Explore

Subscribe to our Newsletter

legal will Long Island lega lwill New York legal will NYC legal will Queens legal will Staten Island living trust Brooklyn living trust Long Island living trust New York living trust NYC living trust Queens living trust Staten Island medicaid trust Brooklyn medicaid trust Long Island medicaid trust New York medicaid trust NYC medicaid trust Queens medicaid trust Staten Island New York estate planning legal New York probate lawyers NYC guardianship lawyer probate attorney Dutches county probate attorney Kings county probate attorney Nassau NY probate attorney Orange county probate attorney Putnam county probate attorney Queens probate attorney Rockland probate attorney Suffolk probate attorney Sullivan county probate attorney Ulster county probate Brooklyn lawyer probate lawyer Kings county probate lawyer Long Island probate lawyer Nassau probate lawyer Queens probate lawyers New York probate lawyers NYC probate lawyer Staten Island probate lawyer Suffolk probate lawyers Ullivan county probate New York attorneys probate New York lawyer probate NYC lawyer probate NYC lawyers probate property attorney probate property lawyer revocable trust Brooklyn revocable trust Long Island lawyers directory NY revocable trust New York revocable trust NYC revocable trust Queens revocable trust trust Bronx will attorney Brooklyn will attorney Long Island will attorney New York will attorney NYC will attorney Queens will attorney Staten Island will lawyer Brooklyn will lawyer Long Island will lawyer New York will lawyer NYC will lawyer Queens will lawyer Staten Island wills and trusts Bronx Wills and trusts Brooklyn wills and trusts Long Island wills and trusts New York wills and trusts NYC wills and trusts Queens wills and trusts Staten Island wills Brooklyn Estate Planning Boca Raton Miami Lawyer Near Me Lawyer Magazine Estate Planning Miami Lawyer wills Long Island wills New York wills Staten Island estate planning lawyers NYC probate New York lawyers trust and estate law firms estate planning attorneys Brooklyn estate planning lawyers Brooklyn estate planning Brooklyn estate planning New York attorney estate planning New York attorneys estate planning attorney Brooklyn estate planning New York lawyer estate planning New York lawyers guardianship attorney Brooklyn guardianship attorney Long Island guardianship attorney New York guardianship attorney NYC guardianship attorney Queens guardianship attorney Staten Island guardianship lawyer Brooklyn guardianship lawyer Long Island guardianship lawyer New York Estate Planning Lawyer NYC guardianship lawyer Queens guardianship lawyer Staten Island Near Me Dental Near Me Lawyers