When someone passes away in Michigan and there is no will in place, their representative settles their estate according to probate laws. An essential part of that process is understanding the difference between probate and nonprobate assets. Knowing what does and does not go through probate can help families plan more efficiently and avoid unnecessary delays.
Our team explains which assets fall under probate and helps prevent unnecessary delays or disputes during the estate settlement process. Call Brown Borkowski & Morrow today at 888-757-1681 to book a free appointment or reach out online.
What are probate assets?
Probate assets are those solely under the deceased person’s name. In other words, they do not have a named beneficiary or co-owner. The probate court oversees the transfer of these assets to the heirs or beneficiaries. Examples of probate assets in Michigan include:
- Real estate titled only in the deceased’s name
- Bank accounts without a joint owner or payable-on-death (POD) designation
- Vehicles titled solely in the deceased’s name
- Personal property such as jewelry, furniture and collections
Probate allows the court to verify the will’s validity and appoint a personal representative. It also ensures the estate settles all debts and taxes before distributing the assets to the beneficiaries.
What are nonprobate assets?
Nonprobate assets bypass the probate court and pass directly to a named beneficiary or co-owner. People typically arrange these assets beforehand so they avoid court oversight. Common nonprobate assets include:
- Jointly owned property with rights of survivorship
- Life insurance policies with a named beneficiary
- Retirement accounts such as IRAs or 401(k)s with designated beneficiaries
- Bank accounts with POD or transfer-on-death (TOD) instructions
- Assets placed in a revocable living trust
Because nonprobate assets transfer automatically, they can offer privacy and faster access for loved ones during a tough time.
Why does the difference matter?
Understanding which assets go through probate can help families avoid surprises and delays after a loved one passes. With proper planning, you can keep more of your estate out of court and make things easier for your heirs.
Our Attorneys Can Help!
If you are unsure how your assets are titled or what your estate plan covers, consider speaking with an estate planning attorney. We can help you structure your assets to meet your goals and protect your loved ones. Contact Brown Borkowski & Morrow at 888-757-1681 or through our contact form to discuss your situation and help ensure your loved one’s estate is handled correctly.