Which Of The Following Is Most Likely To Have To Go Through Probate?

Discover which assets are most likely to go through probate and find effective strategies to manage your estate under Utah law. Make informed decisions today.

Which Of The Following Is Most Likely To Have To Go Through Probate?

Navigating the world of probate can feel like stepping into a daunting labyrinth. However, understanding what probate is and which assets are most likely to go through it is essential for anyone looking to manage their estate effectively or to assist in managing someone else’s. This article will give you a detailed understanding of probate procedures, regulations based on Utah law, and actionable insights to help you make informed decisions.

What is Probate?

Probate is a legal process that occurs after someone dies, during which a court supervises the distribution of the deceased person’s assets. This process verifies the validity of a will, settles any debts and taxes, and ensures that the remaining estate is distributed according to the wishes laid out in the will or under state law if no will exists.

In Utah, the probate process is governed by the Utah Uniform Probate Code, specifically Title 75 of the Utah Code. Understanding this code will provide you valuable insights into the probate process.

Which Assets Are Likely To Go Through Probate?

Certain assets are more likely to go through probate than others. In general, assets that are solely in the decedent’s name and do not have a designated beneficiary must usually go through probate. Here are some common examples:

1. Real Estate Property

• If the property is solely in the deceased person’s name, it will typically go through probate. This includes homes, land, and any additional real estate holdings.

1. Personal Property

• Items like jewelry, vehicles, art collections, or furniture that do not have a beneficiary designation or joint owner.

1. Bank Accounts

• Accounts that are in the deceased person’s name alone without a payable-on-death (POD) beneficiary.

1. Investment Accounts

• These can include stocks, bonds, and mutual funds unless they have a transfer-on-death (TOD) beneficiary.

1. Business Interests

• Sole proprietorships or business interests that do not have a succession plan in place will usually need to go through probate.

Real-World Scenarios in Utah

Let’s take a moment to illustrate these concepts with a real-world example from Salt Lake City. Imagine you live in Salt Lake City, and your elderly aunt has recently passed away. She owned a house in her name alone, had a couple of bank accounts without beneficiaries, a car, and some valuable art pieces. Without proper planning, all these assets are subject to the probate process in Utah.

The Utah Uniform Probate Code

Utah’s Uniform Probate Code (UPC) provides a structured outline for the probate process, ensuring the orderly distribution of the deceased’s assets. One crucial section to note is Utah Code § 75–3–105, which outlines the jurisdiction and venue for probate proceedings. Generally, the probate process will take place in the county where the deceased lived. For instance, if your aunt resided in Salt Lake County, the probate proceedings would take place there.

Avoiding Probate: Is it Possible?

Probate can be time-consuming and costly, which is why many people look for ways to avoid it. Here are some strategies:

1. Living Trusts

• By placing your assets in a living trust, you can avoid probate because the trust itself does not die; it continues to exist and manage your assets after you pass away.

1. Joint Ownership

• Owning property jointly with someone else can spare it from probate. When one owner passes away, the property automatically goes to the surviving owner.

1. Beneficiary Designations

• Designating beneficiaries on bank accounts, retirement accounts, and insurance policies can also help in avoiding probate.

Why Understanding Probate Matters

Understanding probate is not just about legal compliance; it equips you with the knowledge to make informed decisions about estate planning. Knowing which assets are subject to probate can help you take steps to minimize the time, expense, and potential conflict associated with the process.

Common Misconceptions

1. All Assets Go Through Probate

• Not all assets need to go through probate. Assets with named beneficiaries or those placed in trusts are typically exempt.

1. Probate is Always Expensive and Lengthy

• While probate can be costly and time-consuming, it isn’t always the case. Summary probate or informal probate procedures can expedite the process.

1. Probate Clears All Debts

• Probate doesn’t necessarily absolve all debts. Creditors must be paid before any assets are distributed to beneficiaries.

1. You Don’t Need a Lawyer for Probate

• While it’s not required to have a lawyer, the process can be complex, and having a probate lawyer can help navigate the legal intricacies.

FAQs

1. Do all wills go through probate in Utah?

• Yes, typically all wills need to go through probate to ensure they are valid and that assets are distributed according to the deceased’s wishes.

1. How long does probate take in Utah?

• The process can take anywhere from a few months to over a year, depending on the complexity of the estate and whether any disputes arise.

1. What if someone dies without a will in Utah?

• If someone dies intestate (without a will), their assets will be distributed according to Utah’s intestacy laws as outlined in Utah Code § 75–2–101.

1. Can probate be done without going to court in Utah?

• Utah allows for informal probate, which may not require court hearings but still involves filing necessary documents with the court.

1. What are the costs associated with probate in Utah?

• Costs can include court fees, attorney fees, and executor fees, which vary based on the size and complexity of the estate.

Conclusion

Understanding which assets are most likely to go through probate is crucial for effective estate planning. If you have assets that you don’t want to go through probate, consider your options for joint ownership, beneficiary designations, or placing them in a trust. While the probate process in Utah may seem daunting, being well-informed can make it more manageable.

To speak with a probate lawyer, call attorney Jeremy Eveland at (801) 613–1472.

Feel empowered by this knowledge and ready to take charge of your estate planning? Clap this article, leave a comment, and don’t forget to subscribe to our Medium newsletter for more updates! Jeremy Eveland 8833 S Redwood Rd West Jordan Utah 84088 (801) 613–1472

The information contained in this article is for information purposes only and is not legal advice. For legal advice, hire a competent lawyer in your jurisdiction.