Probate is the legal process through which a deceased person’s assets are administered and distributed according to their will—or, if no will exists, under New York’s intestacy laws. While probate is necessary for many property types, not all assets must undergo this process. Knowing which assets avoid probate can help you plan your estate more efficiently and minimize delays or complications for your heirs.
At N. Khasidova & Associates in Queens, NY, Nigina Khasidova and her team guide clients through estate planning and probate, ensuring that assets are distributed smoothly and according to their wishes. Below, learn which types of assets can avoid probate in New York and how proper planning can help your loved ones.
1. Jointly Owned Property with Right of Survivorship (JTWROS)
Property owned jointly with right of survivorship automatically passes to the surviving co-owner when one owner dies. This type of ownership avoids probate because the transfer occurs outside of the estate. Common examples include:
- Real estate held as joint tenants with right of survivorship
- Bank accounts or investment accounts held jointly
To avoid probate, it is important to ensure that the account or deed explicitly states “with right of survivorship.”
2. Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts
Certain financial accounts can designate beneficiaries who will receive the assets directly upon the account holder’s death. These accounts bypass probate entirely:
- POD bank accounts: Funds transfer directly to the named beneficiary.
- TOD investment accounts: Securities and brokerage accounts pass to the designated recipient.
Properly naming and updating beneficiaries is crucial to ensure the intended transfer.
3. Life Insurance Policies
Life insurance proceeds generally avoid probate because the policy names a beneficiary who receives the payout directly. It is essential to keep the beneficiary information current, as outdated designations may not reflect your current wishes.
4. Retirement Accounts
Accounts such as IRAs, 401(k)s, and pensions can transfer directly to named beneficiaries, bypassing probate. Similar to life insurance, ensuring the beneficiary designations are accurate and up to date is essential.
5. Revocable Living Trusts
Assets placed in a properly drafted and funded revocable living trust are not subject to probate. The trustee manages and distributes the assets according to the trust’s terms, which allows for privacy and can help reduce administrative delays.
6. Small Estate Procedures
New York provides simplified procedures for small estates. For estates valued under certain thresholds (currently $50,000 for most assets outside real property), heirs may be able to claim assets without full probate through a small estate affidavit or simplified court process.
Why Understanding Probate-Avoiding Assets Matters
Avoiding probate can save time, reduce costs, and help preserve privacy for your family. However, careful planning is required to ensure assets are titled correctly and beneficiary designations are updated. Mistakes or oversights can result in unintended probate or family disputes.
Plan Ahead with N. Khasidova & Associates
Proper planning is key to a smooth estate transition, whether you’re creating a will, establishing a trust, or reviewing your beneficiary designations. N. Khasidova & Associates in Queens, NY, provides personalized guidance to help you protect your assets and ensure your wishes are followed.
Contact our firm today to schedule a consultation and safeguard your family’s legacy