It’s a common misconception that all assets, regardless of where or how they are held, will go through the probate process when someone passes away. This is not true, as there are ways to help shield your assets and loved ones from this complicated process. If you’re interested in learning what assets do not have to go through this process, you’ll want to keep reading. The following blog explores what you should know about these matters and how Montgomery County, PA probate attorneys can help guide you through these matters.
What is probate?
Probate is the process in which the courts oversee the distribution of a person’s estate. They must validate the will before assets can be passed out. Generally, any outstanding debts will be settled before the inheritors or named beneficiaries receive their share of the estate.
It’s a common misconception that only estates without a will go through probate. However, this is only partially true. The court will handle the distribution of someone who passes away intestate, or without a will. This is to help ensure that all assets owned by the deceased are distributed according to their last will and testament or in accordance with Pennsylvania law if they do not have a will before their passing.
What assets go through probate?
Generally, there are several things that influence whether or not assets will endure this process in Pennsylvania. It is the responsibility of the person you appoint as your personal representative or estate executor to determine which assets in our estate must go through probate.
Typically, in Pennsylvania, any asset that is not jointly owned or does not have a beneficiary designation must be probated. For example, if you own a joint bank account with your spouse, this account is not subject to probate and will be passed directly to your spouse. This is also true if you name your spouse, or anyone else for that matter, as the beneficiary of an insurance policy, for example.
Additionally, assets held within a trust fund are not subject to go through probate. However, if you have a testamentary trust, meaning the trust is held by your will, it is not protected from probate.
As such, all other assets are subject to probate in Pennsylvania.
If you are interested in planning your estate to avoid assets enduring probate or were recently appointed as the executor of a loved one’s estate and need help navigating probate, obtaining legal advice is in your best interest. This process can be incredibly complex, so it’s in your best interest to let an experienced lawyer from Friedman Schuman Layser guide you through this process. We understand how complicated these matters can be, which is why we are ready to fight for you. Contact us today to learn how we can assist you.
