Probate is an essential process for handling the distribution of a deceased person’s assets. When someone passes away, their estate may need to go through probate to make sure that their assets are distributed according to their wishes or the laws of intestacy if there is no valid will.
However, not all assets require probate.
Understanding which assets must go through probate can help families prepare and manage the process efficiently. At Brier Law Firm, PLLC, we are committed to helping Tulsa, Oklahoma, and beyond through the probate process.
The following should be a helpful resource on which assets require probate.
Certain types of assets are subject to probate because they are owned solely by the deceased and lack a designated beneficiary. Below is an overview of assets that usually require probate:
Real estate titled solely in the name of the deceased generally needs to go through probate. This includes homes, land, or other properties that do not have co-owners with survivorship rights. If the deceased held the property solely in their name, the court will oversee its transfer to the rightful heirs or beneficiaries.
Bank accounts that lack a payable-on-death (POD) or transfer-on-death (TOD) designation are subject to probate. Often held solely by the deceased, these accounts require probate to determine their rightful owner.
Personal property, such as jewelry, art, furniture, and vehicles, often goes through probate if no alternative ownership or transfer method is in place. Items without a designated co-owner or beneficiary are typically part of the probate estate.
If the deceased owned a business or held shares in a private company, these interests might need to go through probate. This is especially true when no formal succession plan or co-ownership agreement exists.
Stocks, bonds, and other investments that do not have a named beneficiary or are not held jointly are subject to probate. Without proper designations, these assets become part of the probate estate.
While many assets require probate, others bypass the process because they include mechanisms for automatic transfer upon death. Understanding these exceptions can clarify what to expect during estate administration.
Property held jointly with rights of survivorship automatically passes to the surviving owner upon death. For example, a home owned by spouses as joint tenants with rights of survivorship will transfer directly to the surviving spouse, avoiding probate.
Bank accounts, retirement accounts, and life insurance policies with POD or TOD beneficiaries typically avoid probate. Upon the account holder’s death, the designated beneficiary gains direct access to the funds without court involvement.
Assets placed in a revocable or irrevocable trust are not subject to probate. The trust’s terms dictate how these assets are distributed, bypassing the probate court entirely.
Oklahoma allows simplified procedures for small estates. If the total value of the probate estate falls below a certain threshold, heirs may use an affidavit process instead of formal probate. This avoids lengthy court proceedings for smaller estates.
Assets requiring probate generally do so because there’s no other legal mechanism in place to transfer ownership. Probate establishes the legal authority to distribute these assets, resolve disputes, and makes sure that creditors are paid. It serves as a safeguard, providing a clear process for handling a deceased person’s estate.
Sole ownership means the asset belonged exclusively to the deceased, with no joint owner or automatic transfer provisions. Probate steps in to:
Authenticate the will, if one exists.
Identify and inventory the deceased’s assets.
Pay outstanding debts and taxes.
Distribute the remaining assets to heirs or beneficiaries.
This process makes sure that the deceased’s wishes or the law governs the asset’s transfer.
While many assets fall under probate, there are notable exceptions. Oklahoma law provides specific exclusions, such as:
Property held in trust: Trusts manage assets outside of probate.
Small estate procedures: Estates under a certain value threshold qualify for simplified administration.
Survivorship arrangements: Jointly owned property transfers automatically to the surviving owner.
For those wishing to reduce the burden of probate on their families, there are several strategies:
Establish a trust: Transferring assets into a trust can make the transition smoother without probate.
Name beneficiaries: Designating beneficiaries on accounts and policies allows direct asset transfers.
Joint ownership: Structuring property ownership to include survivorship rights avoids court oversight.
Proper estate planning can save time and reduce stress for loved ones.
Understanding probate’s function also involves recognizing the roles of executors and courts. Executors manage the estate’s administrative tasks, including filing court documents, notifying beneficiaries, and addressing debts. The probate court provides oversight, preventing disputes and making sure of proper asset distribution.
It’s also essential to note that some assets may appear exempt but still require limited court involvement. For example, jointly owned property might need legal documentation to confirm transfer of ownership, even if probate isn’t necessary.
Misunderstandings about probate lead to unnecessary concerns. Some think all assets must go through probate, but that’s not true. Others think the process is unavoidable regardless of planning, which overlooks legal tools like trusts and beneficiary designations. Clarifying all this helps individuals make informed decisions.
Another common misconception is the belief that probate only involves large estates. In reality, even modest estates can require probate if no other transfer mechanisms exist. Additionally, probate timelines vary, with simpler estates completing the process faster than those with disputes or missing documents.
Probate involves costs that can accumulate throughout the process. These include court fees, executor compensation, and attorney fees, each of which can impact the estate’s value. Although Oklahoma’s probate laws are designed for efficiency, there are still expenses that can arise, particularly for larger or contested estates.
Estate planning can play a significant role in reducing the overall expenses of probate. Several strategies can help streamline the probate process and minimize associated costs:
Establishing a trust: By placing assets in a revocable or irrevocable trust, individuals can bypass probate entirely. Since trust assets do not pass through probate, the associated court, executor, and attorney fees are avoided. This can be particularly beneficial for those with substantial assets or a complicated estate.
Designating beneficiaries: For assets like bank accounts, life insurance policies, and retirement accounts, naming beneficiaries confirms that these assets pass directly to the intended recipient without requiring probate. This reduces the estate’s total value that goes through probate, thereby lowering court and executor fees.
Joint ownership: Holding property jointly with the right of survivorship allows the surviving owner to inherit the property without the need for probate. This is particularly useful for married couples, as it makes sure that assets pass directly to the surviving spouse without court involvement.
Using simplified procedures: In Oklahoma, estates below a certain value may qualify for simplified probate procedures, reducing the time and costs involved. This process typically requires fewer court filings and a more streamlined administrative process, which can save on legal fees and executor compensation.
Pre-planning and clear documentation: Clear and thorough estate planning documents, such as a well-drafted will or trust agreement, can help minimize confusion and disputes. When there is clarity about the distribution of assets, beneficiaries are less likely to contest the will, which can significantly reduce attorney fees and the time spent in court.
While probate handles many assets, there are ways to minimize its scope through careful planning. At Brier Law Firm, PLLC, located in Tulsa, Oklahoma, we serve clients throughout the Tulsa area, including Cherry Street, Kendall-Whittier, Mcclure Park, Patrick Henry, South Peoria, Longview Lake, Turley, and throughout Rogers County and Wagoner County.
Call today for more information.
Probate is an essential process for handling the distribution of a deceased person’s assets. When someone passes away, their estate may need to go through probate to make sure that their assets are distributed according to their wishes or the laws of intestacy if there is no valid will. However, not all assets require probate.
Even amid grieving the loss of a loved one, there are time-sensitive responsibilities that need to be addressed, particularly if you have been named the executor of their estate. One of the most critical aspects is managing the probate process.
