A lot of people have concerns about going through the Hillsborough County probate process after the loss of a loved one because they’ve heard it’s time-consuming and costly. What many people don’t realize, however, is that not every asset has to go through a lengthy legal process before the heirs can take it.
In the following situations, assets may be able to transfer directly to heirs without going through a formal probate process with the local courts.
- The estate value is small.
Probate is generally not needed for very small estates, but what qualifies as a “small estate” varies depending on where you live. In Florida, an estate of $75,000 or less is considered small and may not have to go through a formal court proceeding. On the other hand, an estate with a value below $30,000 may still go through summary probate in New York.
The first thing you need to do is identify individual assets, including bank accounts, real estate, businesses, investments, and insurance policies. By adding up the values of all these assets, you’ll have a rough idea of the value of your estate or the estate of your loved one.
Once you’ve computed the value of your estate, compare it with your state’s small estate threshold. If the total assets are below the state’s threshold value, you will not have to go through the probate process.
- The property is jointly owned.
Assets that are owned in joint tenancy with rights of survivorship will transfer to the joint owner without needing the approval of the probate court. This right of survivorship generally applies to properties owned by married couples, but some states don’t recognize joint ownership by marriage. When in doubt, contact a probate lawyer for guidance regarding an asset that’s owned jointly with someone else.
- The assets have designated beneficiaries.
Some assets such as insurance policies, retirement accounts, pension plans, and investment accounts allow the owner to name a beneficiary who can receive the proceeds once the holder of the policy or account dies. No probate is needed in this case.
- The assets are in a trust.
A trust is a legal instrument that holds title to assets, and those assets do not have to go through probate after the grantor dies. Instead, the person appointed as trustee will administer assets in the trust according to the deceased’s wishes. Having a trust is not a guaranteed ticket out of probate court, however. We have seen plenty of cases where assets were not titled properly in the name of the trust and they had to go through probate anyway.
Getting Help
Estate administration can be cumbersome, especially when the probate court has to be involved. If you have questions about whether a specific asset has to go through probate after the loss of a loved one, or you want to discuss creating a plan to help keep your heirs out of probate court when you are gone someday, contact our office at (813) 438-8503 to schedule an appointment.