Planning for the end of your life is an important step to ensure the financial security of your friends and loved ones after your passing. Estate planning is the process through which you can make provisions for how your assets will be distributed, whether that is to friends, family members, caregivers, or even charitable institutions. Probate is the process that your will goes through to make sure your debts are paid and your assets are distributed according to your wishes. In planning for your estate and drafting your will, it is important to understand which assets actually go through probate in California.
There are several types of assets that will go through probate in California. If you are married, then all of your separate property will go through probate. Separate property includes assets you owned before marriage, assets you received through inheritance during the marriage, assets received as a gift from someone outside the marriage, and certain types of personal injury awards. Half of the decedent’s community property will also go through probate. Finally, any portion of an asset that is titled as tenants in common with other people will also go through probate.
It is important to note however, that even if property falls into the above categories, it may not be subject to probate. Assets that are held in revocable or irrevocable trusts are not part of the estate, and therefore not subject to probate. If the assets are transferred out of your ownership properly before your death, such as if you make a gift to your child. Any accounts that are titled as “payable on death” or “transfer on death” will also not be part of the estate. Any real estate that is titled as “joint tenants” will not be subject to probate, as your interest will immediately pass at the time of your death to your joint tenant, as is most often the case in real estate held by married couples. Finally, if you have a life insurance policy or retirement account, you can name a beneficiary on those accounts. The proceeds of those accounts will then pass directly to your named beneficiary without first having to pass through probate.
If you have questions about what is included in probate or about California probate, in general, contact us today. We can talk to you about your assets and your plans for the future. Talk to Los Angeles California attorney, Mina Sirkin at 818.340.4479.
