What Assets Are Subject to Probate
In North Carolina, not all assets are subject to probate. Whether an asset is subject to probate depends on how it is owned and whether it has a designated beneficiary or joint owner. Here’s a breakdown of assets that are typically subject to probate in North Carolina:
- Solely Owned Assets: Assets owned solely by the deceased person are generally subject to probate. This includes real estate, bank accounts, investment accounts, and personal property titled solely in their name.
- Real Estate: Real property owned solely by the deceased person, such as a house or land, is subject to probate unless it is held in a way that avoids probate, such as through joint tenancy with rights of survivorship or a living trust.
- Bank Accounts: Bank accounts, including checking and savings accounts, that are solely in the deceased person’s name are subject to probate. However, accounts with designated payable-on-death (POD) or transfer-on-death (TOD) beneficiaries can avoid probate.
- Investment Accounts: Investment accounts, such as stocks and bonds, held solely in the deceased person’s name are subject to probate. Like bank accounts, they can avoid probate if they have designated beneficiaries or are held in a living trust.
- Personal Property: Personal property, such as vehicles, jewelry, furniture, and other possessions owned solely by the deceased person, is subject to probate.
- Life Insurance Proceeds: Life insurance policies payable to the deceased person’s estate are subject to probate. However, policies with designated beneficiaries do not go through probate and are paid directly to the beneficiaries.
- Retirement Accounts: Retirement accounts, such as IRAs and 401(k)s, with the deceased person’s estate as the beneficiary are subject to probate. To avoid probate, these accounts should have living beneficiaries named.
- Business Interests: If the deceased person owned a business solely in their name, the business may be subject to probate. Planning strategies, such as creating a business succession plan, can help mitigate probate for business interests.
It’s important to review and update the ownership and beneficiary designations of your assets to ensure that you achieve your intended estate planning goals and minimize the assets subject to probate. Consulting with an estate planning attorney can help you navigate these complexities and make informed decisions about your assets and their distribution.
If you need assistance contact the Law Offices of Austin Vandeveer. We welcome the opportunity to serve you and your family.