What Types of Assets Are Not Transferred Through the Probate Process?

When planning for the distribution of your estate, it’s essential to understand that not all assets pass through probate. Probate is the court-supervised process through which a deceased person’s assets are transferred to heirs named in a will, or recipients designated by Georgias intestacy law if no valid will exists. You have many options when developing a comprehensive estate planning strategy and knowing how specific assets are treated should shape your decision-making process.

Types of assets that are not distributed through probate include the following:

• Assets placed in trusts Many people use revocable living trusts as a cornerstone of their overall estate plan. These legal instruments give their grantors the ability to access their property for the rest of their life and then transfer what remains at their death to named loved ones outside of the probate system. You might also use a revocable or irrevocable trust for other purposes as well, such as to reduce tax exposure, direct how funds are to be used or retain eligibility for Medicaid long-term care benefits.
• Jointly owned property Real estate, bank accounts and other assets held in joint tenancy or tenancy by the entirety typically pass directly to the surviving co-owner(s) upon the death of one owner.
• Assets with designated beneficiaries Retirement plans and investments often include payable-on-death clauses that accounts allow you to designate one or more beneficiaries who will receive the assets upon your death. These assets bypass probate and are distributed according to your instructions.
• Life insurance proceeds Benefits provided through a life insurance policy do not become part of the decedents estate. Those proceed are paid directly to the beneficiaries listed within the policy.
• Gifts made during the decedents life When you make a gift during your lifetime, whatever youve given is not subject to probate upon your death. However, it’s important to consider the potential impact of gift taxes that can be imposed and ensure that gifts are properly documented.

Understanding the different types of non-probate assets is crucial for effective estate planning. By strategically arranging your assets and utilizing tools such as trusts and beneficiary designations, our estate planning attorneys can help you streamline the distribution process, minimize estate taxes and provide for your loved ones in accordance with your wishes.

Dyer Rusbridge Argo, P.C. advises clients in Cherokee County and other parts of Georgia on the preparation of wills and trusts, as well as other estate planning issues. Please call 770-450-5733 or contact us online to schedule a consultation. Our office is in downtown Canton.