When a loved one passes away and you’re left to pick up the pieces, one of the many questions you may come across is about what assets go through probate. At The Law Office of Raymond E. Brown, our Annapolis, MD estate planning attorneys can offer compassionate guidance as you navigate the probate process following the death of your loved one. We can also help ensure that your assets do not go through probate when you pass away.
Probate is the legal process that validates a will, settles debts, and distributes the remaining assets to beneficiaries. In Maryland, several types of assets typically require probate to be transferred to the rightful heirs. In this blog, we’ll cover what those assets are and what, if anything, you can do to help them bypass probate.
Want to learn more about how probate may affect you or your loved one’s estate? An Annapolis probate attorney on our team can help you understand the probate court process in Maryland, whether it’s preparing for your future heirs or helping guide you through your loved one’s estate administration.
Call our law firm at (443) 554-9944 or send a message online to schedule a meeting with an experienced Annapolis estate attorney at The Law Office of Raymond E. Brown today.
A Brief Overview of the Maryland Probate Process
When a person dies, they will likey leave being assets subject to probate. Probate is the legal process through which a deceased person’s estate is managed and distributed. It involves validating their last will and testament (if they had one) with the Registrar of Wills, appointing a personal representative to oversee the estate, notifying creditors and beneficiaries, settling any of the deceased person’s debts and taxes, and distributing any of the remaining assets to the appropriate beneficiaries.
In Maryland, the length of the probate process can vary, typically taking several months to a year, depending on the estate’s complexity. The primary purpose of the probate process is to provide a structured method for settling the deceased person’s financial affairs and ensuring their family members and other beneficiaries receive their rightful inheritance.
If the deceased person did not leave behind a will, their estate will be considered “intestate.” Under Maryland’s intestacy laws, all assets and property owned (after settling debts and liabilities) will be distributed to immediate family members, such as a surviving spouse, any surviving children, or other close relatives.
What Assets Have to Go Through Probate in Maryland?
Assets that go through probate require legal validation and oversight before they can be distributed to heirs. Unlike assets that pass directly to beneficiaries, assets that are considered probate assets must be identified, valued, and processed through the probate court.
This is to ensure debts and taxes are paid, and that the remaining estate is distributed according to the deceased’s will or state law. Below are some common assets that are subject to probate in the state of Maryland.
Individually Owned Assets
Individually owned assets are those solely owned by the decedent, meaning it was in their name and without any co-owners or beneficiaries. These assets, such as real estate, bank accounts, investment accounts, and personal property, must go through probate to be transferred to the rightful heirs as specified in the will (or according to Maryland’s intestate succession laws.
Assets with No Beneficiary Designation
Assets with no beneficiary designation, such as personal property, brokerage accounts, retirement accounts, and even some life insurance policies, require probate to determine who should receive them. Without a named beneficiary, these assets become part of the probate estate, necessitating court involvement to ensure the proper distribution of this personal property.
If the deceased person owned a probate asset, like an individually-owned vehicle without a beneficiary designation, and it is their only probate asset, their family may still need to go through probate.
It’s important to make sure all of your assets have beneficiary designations, including your vehicles, so that your assets can pass on to your family in the way that you want them to, even after you’re gone.
Jointly Owned Assets Without Right of Survivorship
Jointly owned assets without the right of survivorship, such as certain joint bank accounts or real estate in which two people had joint tenancy, do not automatically pass to the surviving owner upon death. Any joint asset must go through probate to divide and distribute the deceased person’s share according to the will or state law.
What Assets Do Not Have to Go Through Probate?
Assets that do not go through probate can be transferred directly to beneficiaries without court involvement. These assets bypass the probate process, enabling a quicker and more private distribution.
Below are some of the most common non-probate assets that can be transferred directly to descendants.
Jointly Owned Assets with Right of Survivorship
Jointly owned assets with the right of survivorship, such as joint bank accounts or jointly owned property with the right of survivorship, automatically pass to the surviving owner upon the death of one owner. These assets are not subject to probate, simplifying the transfer and ensuring immediate access for the surviving joint owner.
Assets with Designated Beneficiaries
Assets with a designated payable-on-death beneficiary, including life insurance policies, retirement accounts, medical savings accounts, and payable-on-death bank accounts, are transferred directly to the named beneficiaries upon the owner’s death. This direct transfer allows the decedent’s assets to avoid probate, providing beneficiaries quicker access to their inheritance.
Trust-Owned Assets
Trust assets also avoid probate proceedings, allowing people to protect their personal belongings from probate and preserve them for their beneficiaries. There are a variety of different types of trusts that can apply to different types of situations. A Maryland trust planning attorney can help you establish a trust that is right for you, your financial situation, and your family.
The Importance of Estate Planning for Avoiding Probate
Estate planning is crucial for avoiding probate, as it allows individuals to designate how their assets will be distributed upon their death in a way that bypasses the often lengthy and costly probate process or at the very least makes the process smoother. By using tools such as living trusts, joint ownership arrangements, and beneficiary designations on accounts and policies, individuals can ensure that their assets transfer directly to their heirs without court involvement. This not only expedites the distribution of assets but also maintains privacy, reduces administrative costs, and minimizes potential conflicts among beneficiaries.
Above all, having a proper estate plan can provide peace of mind, knowing that your wishes will be honored efficiently and effectively. If you’re interested in learning how to avoid probate in Maryland, contact an estate planning attorney like Raymond E. Brown today.
How Raymond E. Brown Can Help
The estate planning process can be incredibly complex and overwhelming, but with the guidance of Attorney Raymond E. Brown, an experienced Maryland estate planning lawyer, you can help ensure your affairs are in order and your loved ones are protected.
Raymond and his team bring extensive knowledge and a personalized approach to each client and case, helping you create a comprehensive estate plan tailored to your specific needs and goals. Whether you need assistance with drafting a will, establishing a trust, or navigating a probate court proceeding, Raymond E. Brown provides the knowledge and support necessary to simplify the process and help make probate painless.
Call (443) 554-9944 or contact us via our website to schedule an initial consultation with a member of our team regarding you or a loved one’s estate today.