Most people do not spend much time thinking about what will happen to their assets after they pass away, however, once the topic of probate comes up, it is often met with concern, confusion, and a lot of unanswered questions. If you are currently planning your estate, or are beginning to think about doing so, there is a good chance you are wondering whether probate can be avoided altogether in New York and what that actually means for you and your family. The truth is, while probate serves an important legal purpose, there are ways to reduce it, and in some cases, avoid it entirely. Read on and reach out to a seasoned Buffalo estate administration lawyer from Raimondo & Sundquist to learn more. Here are some of the questions you may have:

What types of assets can pass without probate?

Not all assets are required to go through probate, and understanding which assets can pass outside of the process is often the first step in determining whether probate can be avoided in your particular situation. In many cases, certain assets are designed to transfer directly to a beneficiary or co-owner without any court involvement at all. Some of the most common types of non-probate assets are as follows:

  • Jointly owned property: If you own property jointly with another person and it includes rights of survivorship, that property will typically pass directly to the surviving owner upon your passing.
  • Beneficiary-designated accounts: Assets such as life insurance policies, retirement accounts, and certain bank accounts can be distributed directly to a named beneficiary.
  • Trust assets: Any assets that have been properly transferred into a trust during your lifetime will generally not be subject to probate.
  • Transfer-on-death accounts: Certain financial accounts allow you to name a beneficiary who will receive the asset automatically when you pass away.

As long as these assets are properly set up and maintained, they can bypass probate entirely, which is why they are so frequently used in estate planning.

How can estate planning strategies help avoid probate?

Simply put, avoiding probate is usually not something that happens by accident, and instead, it is the result of taking proactive steps to ensure your assets are structured in a way that allows them to pass outside of the probate process. With the right estate plan in place, you can maintain control over your assets during your lifetime while also making things significantly easier for your loved ones in the future. Some of the most effective strategies used to avoid probate include the following:

  • Creating a revocable living trust: By placing your assets into a trust, those assets are no longer considered part of your probate estate, and they can be distributed according to the terms of the trust.
  • Keeping beneficiary designations up to date: It is important to regularly review and update your beneficiary designations so they reflect your current wishes.
  • Using joint ownership when appropriate: In certain cases, adding a joint owner to an asset can allow it to pass directly to that person, though this should be done carefully.
  • Making lifetime gifts: By transferring certain assets during your lifetime, you may be able to reduce the size of your estate and limit what must go through probate.

Are there situations where probate cannot be avoided?

While many people can reduce or avoid probate through proper planning, there are still situations where probate will be necessary, particularly when assets are held solely in a person’s name without any designation for transfer upon death. In these cases, the court plays a role in ensuring that debts are handled and that assets are distributed in accordance with the law. Some of the most common situations where probate may still be required include the following:

  • Solely owned property: If an asset is titled only in the decedent’s name and does not have a beneficiary designation, it will likely have to go through probate.
  • Incomplete estate planning: If a trust is not properly funded or beneficiary designations are missing, probate may still be triggered.
  • Family disputes: If there are disagreements among heirs or beneficiaries, the court may need to step in to resolve those issues.
  • No will in place: When someone passes away without a will, their estate must go through the administration process under New York law.

If you are considering your options and want to ensure your assets are protected and distributed according to your wishes, contact Raimondo & Sundquist LLP today.