A probate court usually oversees the distribution of a deceased person’s assets and settles their final affairs. However, some estates or properties can skip this process entirely, saving time, money and stress for the person’s loved ones. Understanding these situations can help you plan your estate more effectively or navigate a loved one’s passing with less difficulty.
If you have a small estate
In California, estates valued at $184,500 or less (as of April 1, 2022) may only need a small estate affidavit. This process allows beneficiaries to claim personal property, such as bank accounts or stocks, without going through full probate. To use this method, at least 40 days must have passed since the person’s death, and no formal probate case should be open. However, take note that this process is not applicable to real property like houses or land.
If you have a living trust
Creating a living trust involves shifting the ownership of your assets from your personal name to the trust itself. This establishes the trust as a distinct legal entity that holds these assets. However, as the trustee, you retain control over the assets throughout your lifetime despite the change in ownership. Since the trust, not you personally, owns the assets, they don’t become part of your probate estate when you die. The successor trustee can distribute these assets directly to beneficiaries according to your instructions.
If the property is jointly owned with right of survivorship
When multiple people co-own property with survivorship rights, the remaining owners automatically receive the deceased person’s portion without needing to go through probate. People commonly use this ownership structure for:
- Homes and land
- Shared bank accounts
- Various assets held by married couples or partners
If one owner passes away, the survivors can typically take full possession of the property by providing proof of death, such as a death certificate.
If you have certain assets with beneficiaries
Some financial accounts let you choose who will inherit the asset upon your death. These often include:
- Life insurance
- Retirement accounts (like 401(k)s and IRAs)
- Special bank or investment accounts, such as transfer-on-death accounts
When you pass away, these assets transfer directly to your named beneficiaries without court involvement.
Every estate is unique, and so are its challenges
Estate administration can be fraught with pitfalls. Consider seeking legal counsel to guide you through your specific situation and protect your interests.