Dealing with the loss of a loved one is tough enough without the added stress of figuring out their finances. If you are in New York, you might be wondering what happens to everything owned. Not all assets have to go through that lengthy court process called probate. Some things transfer automatically. Understanding the difference between what goes through probate and what doesn’t is key to smart estate planning and making things easier for your loved ones down the road. Keep reading to learn more, and don’t hesitate to reach out to an experienced Rockland County Estate Planning Attorney for personalized help.

What is Probate, and Why Do Only Some Assets Pass Through It?

In New York, probate is the court-supervised legal procedure required to settle a deceased person’s estate. This process typically involves several steps: validating a will (if one exists), creating an inventory of the decedent’s property, settling all outstanding debts and taxes, and distributing the remaining assets to the rightful beneficiaries.

It is important to note that not all assets have to go through probate. Generally, it only covers property that the decedent owned solely and that lacks an automatic transfer mechanism or a designated beneficiary. Assets are categorized into two types to clarify what is subject to probate:

  • Probate Assets: These are assets held only in the decedent’s name with no joint owner or beneficiary. These assets must go through the court process.
  • Non-Probate Assets: These assets feature built-in transfer mechanisms like joint ownership, valid beneficiary designations, or special deeds, allowing them to bypass the court process and pass directly to the designated co-owner or individual.

What Assets Typically Go Through Probate in New York?

If a decedent leaves assets in their sole name without an automatic transfer mechanism, such as a named beneficiary or joint title, probate is required. Assets that usually go through probate in New York include:

  • Sole-owned real estate
  • Bank accounts owned only in the decedent’s name
  • Investment and brokerage accounts with no beneficiary
  • Personal property without a title or beneficiary (exceeding $30,000)
  • Business interestsheld in the decedent’s name

What Assets Usually Do Not Go Through Probate in New York?

Non-probate assets are those that bypass the probate process because they possess inherent mechanisms for direct transfer upon the owner’s death. These assets generally include:

  • Jointly owned property
  • Beneficiary-Designated Accounts (life insurance, IRAs, 4o1 (k)s, and POD/TOD bank/brokerage accounts
  • Assets in a trust
  • Exempt property

How Can I Plan So Fewer Assets Go Through Probate?

To minimize New York probate assets, you should use simple strategies: update beneficiary designations on life insurance and retirement accounts, and add POD and TOD beneficiaries to bank/investment accounts. These methods allow significant wealth to bypass probate quickly and privately. A properly funded revocable living trust can also hold and distribute assets like real estate without probate, offering benefits such as avoiding multi-state probates, clear incapacity management, and privacy. Due ot the state’s specific laws, coordinate your will, trust, and non-probate transfers with an estate planning attorney, and regularly review asset titles and beneficiary forms.

Connect with an attorney at The Lauterbach Law Firm for guidance and skilled representation.