The passing of a loved one is already an emotionally challenging time, and the responsibility of being an executor of their estate can feel like an additional weight on your shoulders. You might be worried about making mistakes, unsure of where to start or concerned about fulfilling your loved one’s final wishes correctly. These feelings are normal, and understanding the difference between probate and non-probate assets in New York can help ease your burden.
What assets go through probate in New York?
In New York, probate assets typically include:
- Assets solely owned by the deceased
- Personal property, like cars or jewelry
- Bank accounts in the deceased’s name only
- Real estate titled solely in the deceased’s name
Courts will distribute these assets according to the will or, if there is no will, New York’s intestacy laws.
What are non-probate assets?
Non-probate assets bypass the probate process, simplifying your job as executor. These often include:
- Joint bank accounts
- Property owned in joint tenancy
- Life insurance policies with named beneficiaries
- Retirement accounts with designated beneficiaries
- Assets held in a living trust
These assets typically transfer directly to the designated beneficiaries or co-owners without court intervention.
Why does this matter to you?
Understanding the difference between probate and non-probate assets impacts your responsibilities as an executor in terms of:
- Inventory: You will need to identify and list all probate assets for the court
- Time management: Non-probate assets transfer more quickly, allowing you to focus on probate assets
- Creditor claims: Probate assets may be used to pay estate debts, while most non-probate assets are protected
As an executor, it is crucial to organize your approach when handling your loved one’s estate. You can start by creating two distinct lists – one for the probate process and another for non-probate assets. Make it a priority to promptly notify the beneficiaries of any non-probate assets, as these typically do not go through the probate process.
Do not go it alone
Remember, if you find yourself uncertain about the status of any particular asset, do not hesitate to seek professional guidance. Consulting with an experienced attorney can provide clarity and help you handle the estate correctly, guiding you through the complexities that may arise during this process.
