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A closer look at probate and nonprobate assets

On Behalf of | Jan 21, 2025 | Probate

Imagine planning a road trip without a map. You might eventually reach your destination, but not without unnecessary detours and delays. Estate planning works the same way. Without a clear understanding of the process, you risk complications you may have avoided.   

One key element in this journey is knowing the difference between probate and nonprobate assets. This information may help streamline the estate planning process, saving your loved one’s time and money. Let’s explore how these two types of assets differ and why they matter to you.  

Probate assets

When someone passes away, their probate assets go through the court system. These assets typically include property solely owned by the deceased, such as a house, personal belongings or bank accounts.   

The court oversees the distribution of these assets according to the person’s will. New York’s intestacy laws decide who gets what if there is no will. While the probate process ensures legal oversight, it can be time-consuming and costly.  

Nonprobate assets

In contrast, nonprobate assets skip the probate process altogether. These assets usually have designated beneficiaries or joint owners. Think of retirement accounts, life insurance policies and payable-on-death accounts. Assets held in revocable living trusts also fall into this category.   

Setting up your assets this way ensures they transfer directly to your beneficiaries without court involvement. This can save time, reduce costs and simplify the process for everyone involved.  

Understanding the difference between probate and nonprobate assets isn’t just about technicalities but also about control and efficiency. Properly managing these assets can help reduce probate costs and delays. By converting probate assets into nonprobate ones, you can make the estate settlement process smoother for your loved ones.   

How an estate planning lawyer can help  

Managing your assets can be daunting, but you don’t have to do it alone. An experienced estate planning attorney can guide you through the process. These legal professionals can offer valuable insights and strategies tailored to your unique situation.