Throughout your life, you accumulate many things – from your first car to your family home, retirement accounts and cherished heirlooms. These possessions represent your life’s work and memories. When you pass away, all these will have to go somewhere. This is where probate comes into play. This legal process ensures your assets go to the right people after your death, either according to your will or state law, if you left no will behind.
Not all assets go through probate. And when it comes to planning what happens to your estate in the future, knowing which properties will go through this process is crucial. So, which of your belongings will pass directly to your loved ones, and which will be subject to probate in Arizona?
Solely owned assets
Individually titled assets are properties you own entirely in your name, without any co-owners or designated beneficiaries. These form a significant portion of what goes through probate in Arizona. These include real estate properties, such as your house, land and vacation homes, as well as any vehicle you solely own.
Personal belongings
While not often as valuable as your other assets, your personal possessions, such as jewelry and collectibles, still form an essential part of your estate. This category includes a wide range of items, from furniture and electronics to antiques, expensive artworks and family heirlooms.
Financial assets
This category includes bank accounts, investment portfolios and business interests that are solely in your name without designated beneficiaries or joint owners. Checking and savings accounts, stocks, bonds and mutual funds in individual brokerage accounts typically fall into this group.
Assets with outdated beneficiary information
Even assets that typically bypass probate can end up going through the process if their beneficiary information is outdated or incorrect. This often happens with life insurance policies, retirement accounts and transfer-on-death bank accounts when the designated beneficiaries have already passed away.
Planning for a smooth probate
By understanding which assets go through probate, you can take proactive measures to convert them into non-probate items. Consider adding a joint owner to your bank accounts or real estate titles. You can also designate beneficiaries for your retirement accounts and life insurance policies. For personal belongings, creating a living trust is an effective solution. By taking proactive steps now, you can make sure that your hard-earned assets reach the right people, just as you intended.
