When someone dies, it’s common practice for their estate to go through a legal process, known as probate. It’s a procedure that helps prove and administer the deceased person’s Will. If there is no Will to verify, then the court will follow a set of rules called intestacy laws.
While it may be a phrase you are familiar with, understanding the probate process can be a little tricky. One of the first things to get your head around is the difference between probate and non-probate assets.
Understanding this can help you not only plan ahead for your own estate or a loved one’s estate but can also help avoid delays during the probate process. In this article, we’ll take a closer look at the differences between these types of assets to provide you with a clearer understanding of the process and make it as easy as possible for you.
What are probate assets?
Essentially, probate assets are the possessions and accounts that were solely owned by the deceased. These will be in the individual’s name only, and no one else has any legal claim to these assets. These types of assets are included in the probate process.
Examples of probate assets include:
- Property Owned in just one name – could include residential property, business property, a holiday home etc.
- Personal bank accounts with no named beneficiary.
- Vehicles registered in the deceased’s name.
- Share and investments in the name of the person who passed away.
- Jewellery, art, antiques, furniture and other personal belongings.
To ensure you’re prepared for probate, make a list of these so they can be valued and processed before they are passed on to beneficiaries as stated in the Will.
What are non-probate assets?
Non-probate assets are accounts and belongings that are jointly owned and can be directly passed on to someone else without the need to probate. As these types of assets do not require probate, their distribution is typically much quicker.
Examples of non-probate assets include:
- Joint bank accounts that will automatically transfer to the surviving account holder.
- Property that is jointly owned and held as joint tenants.
- Life insurance policies with a named beneficiary.
- Pension pots and ISAs that include beneficiary nominations.
- Any assets that are held in a trust.
As these assets are already legally assigned to another person, they do not need to be part of the probate process. If you want to plan ahead and avoid long delays for your family, you can make sure that as much of your estate as possible sits outside of probate.
It can help give you more control over where your money and belongings go once you pass away, ensuring that your life’s assets remain with your spouse, dependents and loved ones.
Are you looking for a compassionate probate professional?
If you are about to begin probate and are looking for help to make the process as smooth as possible, you don’t have to face it alone.
Please get in touch to discuss your requirements and see how Julie at Hughes Probate can help.
