Estate planning involves identifying and managing assets to ensure a seamless transfer to beneficiaries after death. But what exactly are considered assets in an estate? This question is crucial for individuals planning their estate or preparing to act as an executor. Assets in an estate include everything from real estate to bank accounts, but the specifics can vary depending on the estate’s structure.
In this blog, we’ll explore the types of estate assets, their role in probate, and how to settle an estate effectively. For personalized guidance, the English Law Firm offers expert services in estate planning across Texas, Georgia, and Mississippi.
What Is Included in an Estate?
An estate includes all assets owned by an individual at the time of their death. These assets are categorized into two main types: probate assets and non-probate assets.
Types of Estate Assets
Probate Assets
- Assets that are distributed through the probate process.
- Examples include real estate owned solely by the deceased, personal belongings and accounts without designated beneficiaries.
Non-Probate Assets
- Assets that pass directly to beneficiaries without going through probate.
- Examples include life insurance policies, retirement accounts, and jointly owned property.
To learn more about how probate works, check out how do you know when an estate is settled.
What Are Considered Assets in an Estate?
1. Real Estate
- Includes primary residences, vacation homes, and investment properties.
- Real estate is often the most significant asset in an estate.
Did You Know? Properties placed in a living trust can bypass probate. Read more about what is a living trust.
2. Bank Accounts
- Savings accounts, checking accounts, and certificates of deposit (CDs).
- Joint accounts and accounts with a payable-on-death (POD) designation are considered non-probate assets.
3. Investments
- Stocks, bonds, and mutual funds.
- Accounts with designated beneficiaries, such as retirement accounts, may bypass probate.
4. Personal Property
- Includes jewelry, artwork, collectibles, and vehicles.
- These items often require appraisals to determine their value.
5. Business Interests
- Ownership stakes in businesses, including partnerships, corporations, and sole proprietorships.
6. Life Insurance Policies
- Policies with named beneficiaries are non-probate assets.
What Assets Go Through Probate?
Not all assets are subject to probate. Understanding which assets go through probate can help streamline estate planning.
Assets That Typically Go Through Probate:
- Real estate owned solely by the deceased.
- Personal property, including furniture and electronics.
- Bank accounts without designated beneficiaries.
Assets That Avoid Probate:
- Jointly owned property.
- Accounts with payable-on-death or transfer-on-death designations.
- Assets in a trust.
To simplify the probate process, explore how to close an estate.
How Many Assets Before Probate?
The threshold for probate varies by state. For example:
- In Texas, estates valued at less than $75,000 may qualify for a simplified process called a Small Estate Affidavit (source).
- Georgia and Mississippi have similar thresholds, often excluding small estates from full probate.
Consulting an estate attorney can clarify the probate requirements in your state.
How to Settle an Estate with No Assets
If an estate has no significant assets, the executor still needs to handle outstanding debts, taxes, and administrative duties.
Steps to Settle an Estate with No Assets:
- File Necessary Documents: Submit the death certificate and other required paperwork to the court.
- Pay Outstanding Debts: Use any available funds to settle debts.
- Distribute Remaining Assets: If applicable, distribute minor assets to heirs.
For a detailed guide, read how to settle an estate with no assets.
Probate vs. Non-Probate Assets
| Type of Asset | Goes Through Probate? | Examples |
| Real Estate (Sole Ownership) | Yes | Family home, vacation property |
| Jointly Owned Property | No | Joint tenancy with right of survivorship |
| Bank Accounts (No Beneficiary) | Yes | Savings accounts, CDs |
| Life Insurance Policies | No | Policies with named beneficiaries |
| Personal Belongings | Yes | Jewelry, furniture, vehicles |
Why Choose English Law Firm?
At English Law Firm, we specialize in estate planning and probate law, offering tailored solutions to clients in Texas, Georgia, and Mississippi. Our services include:
- Estate asset evaluation and management.
- Trust creation to avoid probate.
- Legal guidance on probate thresholds and processes.
Contact us today to secure your legacy and simplify the estate planning process.
Conclusion
Understanding what constitutes assets in an estate is essential for effective estate planning and administration. By categorizing assets into probate and non-probate types, you can streamline the process and ensure your wishes are honored.
For expert guidance, reach out to English Law Firm and let us help you navigate the complexities of estate planning and probate.
FAQs
1. What Are the Main Assets in an Estate?
The main assets include real estate, bank accounts, investments, personal property, and business interests.
2. Do All Assets Go Through Probate?
No, only probate assets go through probate. Non-probate assets, such as accounts with beneficiaries, bypass the process.
3. How Much Is the Probate Threshold?
The threshold varies by state. In Texas, estates under $75,000 may avoid probate through a Small Estate Affidavit (source).
4. How Are Debts Handled in an Estate?
Debts are typically paid from estate funds before assets are distributed to beneficiaries.
5. Can Real Estate Be Excluded from Probate?
Yes, if the property is placed in a trust or jointly owned, it can avoid probate. Learn more in what is a living trust.