Does all property have to go through probate when a person dies?

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The probate process can be confusing and tedious, especially just after the death of a loved one. Probate is the legal process in which a judge oversees the administration of an estate to ensure the decedentís property is distributed to the correct beneficiaries. The first step in administering an estate and deciding if a probate is necessary, is to identify the assets owned by the decedent. The simplest method of identifying assets is to search the decedentís mail and/or residence for financial statements or other records. Once the assets are identified, the second step is to determine how those assets are titled, and if any of the assets have designated beneficiaries. Only assets which are titled solely in the name of the decedent will have to go through the probate process, assuming the asset does not have a designated beneficiary, such as a POD feature. Designated beneficiaries can only be utilized for certain assets and are most common for retirement accounts, brokerage accounts and life insurance policies. There are two general categories of assets: 1.) Probate Assets, 2.) Non-Probate Assets. Probate assets are any assets that were owned completely and solely by the decedent at the time of death. The following are potential types of assets that may require probate: ñ Real property which has been titled only in the decedentís name, or held as tenants in common; ñ Bank or brokerage accounts that are titled in the decedentís sole name; ñ Personal property, such as furniture, vehicles, jewelry; ñ Life insurance policies that that donít have a named beneficiary, or have the name of the decedentís estate as the designated beneficiary; ñ A portion or interest of any partnership, LLC, or corporation in which the operating agreement does not address what happens with the assets upon the death of a member. Non-Probate assets that are allowed to bypass the probate process are those that are owned jointly with other people, or that have designated beneficiaries directly on the account. Examples of non-pronate assets may include the following types of assets: ñ Retirement accounts; ñ Property or assets held in a trust; ñ Brokerage accounts or bank accounts held in joint tenancy, or with a POD or TOD beneficiary; ñ Life insurance policies; ñ Any property that is held via tenancy by the entireties, or held in a joint tenancy.

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