Which Assets Avoid Probate in California?

When you are arranging your estate plan, you may be concerned about the distribution of assets following your death and how to protect certain assets from probate. In California, probate and estate law can be complex, leaving many people wondering which assets avoid probate in California.

What Is Probate?

In California, probate is the legal process by which a deceased individual’s estate is inventoried to resolve outstanding debts, with the remainder distributed among the decedent’s beneficiaries, or heirs. Even if you have a will, the will must be verified through the probate courts. For this reason, a will alone is not usually enough to protect your assets from the lengthy and costly probate process.

The probate process is also public and subject to outside interference from third parties who may file a claim on the estate or contest the validity of the will, leading to potential conflicts and added emotional strife. Most probate cases in Orange County are heard at the Costa Mesa Justice Complex, on Harbor Boulevard.

Assets That Avoid Probate

There are several assets that are not subject to probate, mostly due to advanced planning with a qualified estate planning lawyer. Avoiding probate is often preferred for many in estate planning, as it can lead to contentious litigation amongst beneficiaries. The following assets can all avoid the probate process.

Assets in a Revocable Living Trust

A revocable living trust is one of the most effective methods of avoiding probate in California. Any assets included in the trust are exempt from probate interference, providing a seamless transfer of assets to your beneficiaries in the event of your death or incapacity. Only 13% of Americans have a revocable living trust, which means their families must endure the probate process after their loved one dies.

POD and TOD Accounts

Payable-on-death and transfer-on-death accounts are exempt from probate, and streamline the transfer of assets held in checking, savings, and retirement accounts, with the transfer of these assets being immediate upon death.

Jointly Owned Property With Survivorship Rights

When two people own property as joint tenants, or they own community property with right of survivorship, the title to such property automatically transfers on death to the surviving owners. Examples include real estate owned by joint tenants, vehicles, and bank accounts.

Retirement and Life Insurance Accounts

Assets such as IRAs, 401(k)s, and life insurance policy payouts are exempt from probate, with the assets transferring to the named beneficiaries upon death.

TOD Deeds

A transfer-on-death (TOD) deed allows property to transfer to a named beneficiary upon the decedent’s death, so long as it was accurately drafted and recorded, and the decedent still owned the property upon death.

Small Estates

Under California Probate Code 13100, any estate that does not exceed $208,850 is eligible for a small estate affidavit, which allows for a simplified, streamlined process through the courts.

Vehicles With a Named Beneficiary

If a vehicle has a named beneficiary on the title, the DMV can facilitate a smooth transfer of title using a Reg 5 form without court interference.

Hire a Probate Lawyer

Whether you are planning for your estate or managing a deceased loved one’s estate, legal guidance is necessary to avoid costly mistakes that could jeopardize assets. Estate planning and probate lawyers are knowledgeable about California’s complex probate laws and can inform you of your rights and help you avoid probate by utilizing the methods above, as well as other strategies to protect your hard-earned assets.

Many people delay estate planning, with only 24% of Americans having a will. Procrastination is the number one reason given for delaying this important process, but estate planning can help give you valuable peace of mind, securing your assets for your loved ones so they can focus on what matters most.

At Kevin Rice, Attorneys at Law, we’ve been helping citizens of Orange County protect their assets from probate for over thirty years. As one of the most well-respected Orange County probate attorneys, Lead Attorney Kevin Rice has a proven record of advocating for his clients and protecting their interests. Qualified in estate planning as well as probate law, our team can answer your questions, so you have the confidence you need to navigate the legal road ahead.

FAQs

Q: What Assets Are Not Exempt From Probate in California?

A: Any asset not included in a trust or held exclusively in the decedent’s name is subject to probate proceedings in California. When people die intestate, without a will or trust, their assets must be reviewed by the courts to determine succession and distribution of assets, necessitating a probate case. To find out more about whether your assets are exempt from probate, speak with an estate planning lawyer.

Q: Do You Need Probate for a $50,000 Estate?

A: Any estate worth less than $208,850 is subject to a small estate affidavit, which is a streamlined process that eases the time and costs associated with a typical probate case. It is important to understand your estate’s value to pursue the right type of estate planning protections. When you hire a probate lawyer, we can help determine whether the estate requires probate.

Q: What Is the Ideal Way to Avoid Probate in California?

A: There is no one ideal way to avoid probate in California, although strategies such as living trusts and TOD/POD designations can help to smooth the transfer of assets. It’s advisable to seek the advice of a qualified probate lawyer, who can evaluate the details of your estate and make recommendations that can protect your assets from probate in the future.

Q: Can Property Be Transferred Without Probate in California After Death?

A: Property can be transferred without probate, especially if the property is part of a trust or a TOD deed. Estate planning lawyers can draft these important documents in a way that mitigates the risk of probate, helping you to create a legally sound estate plan that addresses your needs. If you have property you would like to be transferred, speak with your lawyer, who can guide you on how to effectively do that.

California Probate Lawyer

At Kevin Rice, Attorneys at Law, we have been serving the residents of Orange, Huntington Beach, and the surrounding area since 1994. Our dedicated, client-first approach will help you navigate the estate planning and probate process with confidence. Contact us today to schedule your free consultation.