Probate is the legal process of administering a person’s estate after they pass away, but there are some exceptional cases where probate may not be necessary. Contact Reno Probate Attorney to get assistance in such cases.
Here are some of the most common exceptional cases of probate and how they may affect the distribution of a person’s assets.
In some cases, the value of a person’s estate may be too small to require probate. This may vary by state, but typically an estate worth less than a certain amount may not require probate. In these cases, the assets can be distributed directly to the beneficiaries without going through probate.
Joint Tenancy with Right of Survivorship
Another exceptional probate case is when a person holds assets in joint tenancy with the right of survivorship. In this case, the surviving joint tenant automatically becomes the asset owner after the other joint tenant passes away, and the asset does not go through probate.
Payable-on-Death (POD) accounts are another exception to probate. These accounts allow a person to designate a beneficiary who will automatically receive the funds in the account after the person passes away. The funds do not go through probate and are not subject to creditors’ claims.
Transfer-on-Death (TOD) deeds are similar to POD accounts, but they apply to real estate. With a TOD deed, a person can designate a beneficiary who will automatically receive ownership of the property after the person passes away without going through probate.
Living trusts are another exception to probate, and they are often used to avoid probate. With a living trust, a person transfers their assets into the trust while they are still alive, and the assets are distributed according to the trust’s terms after the person passes away.
Community Property with Right of Survivorship
Community property with the right of survivorship is another exceptional case of probate. This type of property is typically only available in certain states. It allows a surviving spouse to automatically become the owner of the deceased spouse’s share of the property after their death without going through probate.
Life Insurance Policies
Life insurance policies are also an exception to probate, as the proceeds from the policy are paid directly to the designated beneficiary after the policyholder passes away. The proceeds are not subject to creditors’ claims and do not go through probate.
In conclusion, there are several exceptional cases where probate may not be necessary, including small estates, joint tenancy with the right of survivorship, payable-on-death accounts, transfer-on-death deeds, living trusts, community property with right of survivorship, and life insurance policies. If you are concerned about avoiding probate, you must speak with an experienced estate planning attorney to determine the best option for your situation.