When a loved one passes away, their estate must be administered to ensure that the assets and properties are properly distributed among the beneficiaries. When an individual leaves a will behind, this legal document serves as a guide as to how the estate’s assets will be distributed in accordance with the decedent’s wishes. The legal process that facilitates the administration of a person’s estate is called probate. Essentially, probate allows the personal representative to locate, verify, and use the decedent’s will to ensure that any outstanding debts and applicable taxes are paid before the remaining assets are distributed among the named beneficiaries according to the decedent’s wishes. Although many assets are subject to probate, some are not—meaning that these non-probate assets will pass to the designated beneficiaries under a written instrument or arrangement other than the will. As you explore your estate planning options with a dedicated and highly qualified Vancouver probate and estate planning attorney, it’s worth considering the differences between probate vs. non-probate assets so you can establish an estate plan that best protects your assets, your loved ones, and your legacy.
Understanding Probate in Washington State
First, it’s helpful to understand how the probate process typically works in Washington state. Simply put, “Probate is the legal process through which assets pass from the deceased person (decedent) to their beneficiaries after death.” During this process, the personal representative (usually identified in the will and appointed by the court), will perform three core functions: Collecting and gathering assets; paying any outstanding debts and taxes; and transferring the remaining assets to the beneficiaries. The personal representative is able to act with authority and without court intervention, which makes this legal process move forward relatively smoothly and efficiently so that the beneficiaries can secure the assets and inheritances they need within a fairly short time. However, probate is not always necessary for every estate, especially if the decedent used other asset preservation tools and strategies that enable specific properties and assets to circumvent the probate process (e.g., Trusts).
Probate Assets Vs. Non-Probate Assets in Washington State
A decedent’s assets can be categorized as either probate assets or non-probate assets. Probate assets will need to move through the probate process before they are administered and distributed among the intended beneficiaries. In contrast, non-probate assets will pass to the beneficiaries through an alternate arrangement, such as a written instrument or arrangement other than a will (i.e., contractual agreements, payable on death bank account, transfer on death deed, etc.). Let’s take a closer look at how probate and non-probate properties are typically handled when a loved one passes away.
What Are Probate Assets?
Probate assets are the properties and assets that must move through the legal process of probate before they can be allocated and passed down to the named beneficiaries. During probate, the assets that are subject to probate will be administered according to the decedent’s wishes (expressed in their will) or in accordance with Washington’s intestacy laws (in the event that no valid will exists). In most cases, the following are considered probate assets (and therefore subject to this legal process): Stocks, bonds, bank accounts, and brokerage accounts; interests in vehicles; interests in real property held in fee simple or as a tenant in common; individual retirement accounts; life insurance insurance policies; and all tangible personal properties of the decedent’s estate. Moreover, the majority of the above properties are only considered probate assets if there are no transfers or payable on-death beneficiary designations or joint tenancy with right of survivorship provisions.
Recognizing Non-Probate Assets in Washington State
Unlike probate assets, non-probate assets are able to be transferred to the designated beneficiary without passing through the probate process. Many types of non-probate assets are interests or rights a person has in jointly owned properties or payable on-death agreements that allow the beneficiary to take ownership of the decedent’s share upon their passing (without moving through the probate process). Non-probate assets can include any interest or rights an individual has in the following: “property held in joint tenancy with right of survivorship; real property conveyed through a transfer on death deed; a joint bank account with right of survivorship; a payable on death or trust bank account; a transfer on death security or security account; a deed or conveyance if possession of real property has been postponed until the person’s death (such as property held as a life estate); a trust of which the person is the grantor and which becomes effective or irrevocable only upon the person’s death; or a community property agreement, individual retirement account or bond, or note or other contract the payment or performance of which is affected by the person’s death.” If you have questions about probate assets vs. non-probate assets, reach out to a knowledgeable and experienced Vancouver estate planning attorney today.
Learn More About Probate vs. Non-Probate Property Today
Whether you are just beginning to explore your estate planning options or you are a personal representative or beneficiary with questions about the probate process, enlisting the guidance of a trusted and experienced Vancouver probate lawyer is a great way to make informed decisions with greater certainty and confidence. As you plan for the future, your estate planning attorney can offer strategic insights into this process in order to minimize the effects of probate later on. Securing the support of a seasoned lawyer is essential to ensure meticulous estate planning, proper asset categorization, and adherence to applicable laws. It’s never too early to start preparing for a stable and bright future—reach out to a caring and knowledgeable Vancouver estate planning and probate attorney today to get started.
If you’re ready to learn more about your estate planning options in the Vancouver area, the dedicated and caring probate and estate planning attorneys at Myatt & Bell, P.C., are ready to assist you. Call our Vancouver, Washington office at (360) 360-0212 or our Portland, Oregon office at (503) 641-6262 today to get started.
The content on this blog is for general informational purposes only and does not constitute legal advice. The author of this blog is not an attorney, and the views expressed are solely those of the author. Always seek the advice of a qualified attorney for legal guidance regarding your unique situation.
