What is Probate Property?

What is Probate PropertyProbate Property

Probate is the process of transferring title from the name of the deceased to the beneficiaries as directed by the terms of the will of the deceased or by the laws of intestate succession if there was no will or the will was found to be invalid. Assets that must pass through probate are considered probate property. As your College Station probate attorney can advise you, certain assets need not pass through probate and are deemed nonprobate property.

Real Property

If the decedent passed away as the sole person on title to real estate, it will be necessary for the probate court to supervise transfer of title. However, is title was held in joint tenancy with right of survivorship, as it often is with married couples, title passes to the survivor automatically by operation of law without the need for probate.

Bank Accounts

The manner in which title is held is controlling. A joint account will automatically go to the survivor and an account in only the decedent’s name must be probated. Another option for bank accounts, however, is what is known as a payable on death (POD) beneficiary. During the lifetime of the account holder only he or she has control of the account assets, but immediately upon passing the account passes to the named beneficiary outside probate.

Trust Assets

If the decedent established a trust during their lifetime and properly transferred assets into that trust, those trust assets are excluded from probate and are considered nonprobate assets. Although the assets were controlled by the decedent and will be distributed according to their wishes, the trust as a legal entity is the owner of the assets, not the person. It may be helpful to have a College Station probate attorney assist you in settling the trust.

Life Insurance Policies

Although owned by the decedent, a life insurance policy is actually a contract that directs the death value of the policy to be paid directly to the named beneficiary and is not within the decedent’s probate estate.

Other Considerations

Where a POD beneficiary or the beneficiary of a life insurance policy is the estate of the decedent, those proceeds become part of the probate estate.

Contact a Probate Attorney for Legal Advice

For a complete understanding of the options in estate planning, call the experienced College Station probate attorneys at Peterson Law Group at 979-703-7014.

About Chris Peterson

Chris Peterson is an attorney and the owner and founder of Peterson Law Group, a Texas law firm with offices in Bryan/College Station and Kingwood. He mainly practices in the areas of Estate Planning and Business Planning. Chris is also a Certified Estate Planner. Besides his law practice, Chris is a serial entrepreneur and community volunteer. He is known for his cutting edge law practice that utilizes technology to deliver efficient, excellent work.