When someone passes away, one of the first legal processes that may follow is probate. It’s a court-supervised procedure that helps identify, value, and distribute the decedent’s assets. Not all property will go through probate, though. Some items pass outside the court process, while others must be reviewed and managed by the probate court. For families trying to settle a loved one’s estate, understanding which assets are subject to probate helps avoid confusion and delays.
Property Held In The Decedent’s Name Only
Assets titled solely in the deceased person’s name are the most common to go through probate. This includes bank accounts, real estate, vehicles, and investment accounts that do not have a joint owner or named beneficiary. Since there is no automatic legal transfer to another person, the court steps in to authorize the transfer.
For example, if someone owned a house in their name without joint tenancy or a trust, that home will typically be subject to probate. The same goes for an individual checking account with no payable-on-death (POD) designation. In these cases, the probate court oversees how the property is passed on to heirs or beneficiaries under the will or, if there is no will, under state law.
Personal Property Without Documentation
Items like furniture, clothing, jewelry, and tools are usually considered personal property. These aren’t registered with titles or ownership records, which means they can’t be transferred without probate unless their total value is low enough to qualify for a simplified process. In Colorado, small estates may be settled through an affidavit if the total value of probate assets is under a certain amount, but larger estates will need full probate proceedings.
It’s helpful to create a clear inventory of these items during the estate administration process. This not only keeps things organized but also supports fair distribution among heirs.
Business Interests And Sole Proprietorships
If the deceased owned a business as a sole proprietor, that business becomes part of the probate estate. The assets of the business—such as equipment, accounts receivable, or inventory—must be evaluated and distributed according to the terms of the will or through the intestate succession process if no will exists.
This type of asset often requires legal guidance to handle properly. As your Colorado probate lawyer, we often work with families to manage and transfer business interests in a way that keeps operations running smoothly or winds down the business responsibly.
Property Without A Valid Beneficiary Designation
Some financial accounts and insurance policies allow you to name a beneficiary. When that’s done correctly, these assets can transfer directly to the named person without probate. However, if the beneficiary designation is missing, outdated, or names someone who is no longer living, those assets may be pulled into the probate estate.
It’s a good practice to regularly review beneficiary designations and update them as needed. When they aren’t current, it can create delays in distributing assets that would otherwise transfer automatically.
We Can Help You Make The Right Moves
Probate doesn’t apply to every asset, but it often plays a key role in settling an estate. Knowing what goes through the process helps us prepare and handle the estate properly. At W.B. Moore Law, we work with families across Colorado to address each part of the probate process clearly and efficiently. If you need guidance on which assets require court involvement or how to move forward after a loved one’s passing, contact us today. We’re here to help you take the right steps with confidence.