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What Assets Must Go Through Probate in California?

When someone passes away in California, you might be wondering what happens to their property. Some assets transfer automatically, while others may have to be settled in court. So, what assets must go through probate in California? 

Even with an estate plan, you may still find yourself dealing with these legal proceedings. Here is what you need to know to prepare for this part of the process. 

Your Assets and Probate

Not all property goes through probate. Some assets go right to beneficiaries or co-owners without court intervention. Many times, this is due to how the estate was set up before the person’s passing.

However, there are assets that cannot transfer automatically. They will need legal oversight to distribute. When you know which assets could pass through probate, that is the first step in planning or administering an estate.

Here is a look at those assets.

Assets Held in Sole Ownership

If the deceased owned property solely in their name without a joint owner or beneficiary designation, it must go through probate. This can include:

  • Real estate, such as homes, land, or investment properties
  • Vehicles
  • Bank accounts
  • Personal property, such as jewelry, art, or collectibles

With sole ownership, there’s no legal process for an automatic transfer. In turn, it is up to the court to make sure these assets are distributed to heirs or beneficiaries.

Assets without a Designated Beneficiary

There are some accounts and contracts that allow the owner to name beneficiaries. These assets may include:

  • Life insurance policies
  • Retirement accounts, including 401(k), IRA, or pension plans
  • Payable-on-death (POD) or transfer-on-death (TOD) accounts

When no beneficiary is named, or if the named beneficiary has passed away before the owner, these assets are now part of the probate estate. 

Partially Owned Assets or Contested Property

Even jointly owned assets may pass through probate. This can help if there’s a dispute between heirs or questions about ownership. Some examples include:

  • Real estate held as tenants in common 
  • Business interests or partnerships
  • Intellectual property or royalties

If ownership is unclear or multiple parties claim an interest, probate will be needed to resolve the dispute for a fair distribution.

Assets Subject to Debts and Liabilities

Some assets may be needed to pay the decedent’s debt. In these cases, they must go through probate before paying off the creditors. These include:

  • Bank accounts in the decedent’s sole name
  • Stocks and bonds
  • Real property or valuable personal property

Probate makes sure that creditors are notified and debts are settled before heirs receive their inheritance. 

Assets That Avoid Probate

While the focus is on probate property, there are some assets that can bypass the process. These include:

  • Jointly owned property with right of survivorship
  • Assets with designated beneficiaries
  • Trust assets held in the decedent’s revocable living trust
  • Small estates under $208,000 in most cases

Even with these exceptions, you will want to have an attorney assist with the documentation and transfer of any property.

Planning Ahead Can Minimize Court Intervention

While probate is unavoidable in some situations, estate planning can reduce the number of assets that must go through the court process. You may be able to use:

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  • Revocable living trusts
  • Joint ownership with right of survivorship
  • Beneficiary designations on accounts

All these options can help the property pass directly to heirs. In turn, that can save time, legal fees, and stress for surviving family members.

With help from a California probate attorney, they can review an estate plan and recommend strategies to minimize probate exposure.

Learn More About Protecting Your Assets in California 

What assets must go through probate in California? Many times, probate applies to assets that are solely owned, lack beneficiary designations, or are contested or needed to settle debts. 

When you work with a probate attorney in California, they can make sure the legal requirements are met. That means heirs receive their proper inheritance, and assets are distributed according to your wishes. 

At California Probate, we can help you with the probate process, whether you are starting from the beginning or need help wrapping up an estate. Schedule a consultation today.