E219 What Happens to Your Stuff Upon Death?

<p>It is helpful to know what happens to your probate vs. non-probate assets when thinking about your estate plan or your future inheritance. Do you really know how assets transfer upon your death? You may think there is a shortcut to use in your estate planning but read below to see what really happens.</p> <p>First, there are in-court and out-of-court assets. In-court means that there is a type of asset that has to go through the probate court. Probate court is an extremely specific court that every county in the country has. Their job is to make sure that assets transfer properly. They make sure that the Will is correct and real, and that the proper heirs are notified. If someone dies with a Will, it’s called the <a href= "https://anthonyspark.com/3-stages-of-the-new-york-probate-process/"> probate process</a>. If there is no Will, it is called the <a href= "https://anthonyspark.com/when-are-letters-of-administration-required/"> intestate process</a>. By default, anything in your name or your name alone will go through probate.</p> <h2><strong>What are the advantages of probate assets?</strong></h2> <p>In general, the pros are related to a legal finality.</p> <ol> <li>By going through the probate process there are safeguards in place. The court has procedures in place to protect people who may not be able to protect themselves. For example, if you are survived by minors (children) who don’t have the maturity to look out for their own interests, the court can appoint a temporary guardian. If you are survived by an heir with special needs, there is a procedure in place to make sure their best interests are protected.</li> <li>Probate has processes to make sure final creditors and taxes are paid. If you close the estate properly, there won’t be lingering taxes. If you follow the probate procedure, you won’t be sued later by someone who comes after the estate. There is a 7-month statute of limitations against creditors once probate has taken place. If an executor is appointed on January 1^st, any credito