The probate process ensures the distribution of a person’s estate after they die. Understanding the types of property involved in probate is important for individuals during this time.
It can also help shed light on how tough managing an estate is.
Real property
Real property, commonly known as real estate, is a big component of the probate process. This includes land and homes, which is important considering American homeowner rates reached 64.1% in 2019.
Real property often is a significant portion of an individual’s estate. It is subject to probate proceedings to determine rightful heirs and help the transfer of ownership.
Personal property
The probate process also extends to personal property. This includes tangible assets such as vehicles, furniture, jewelry and household items.
Financial assets
Probate also plays a huge role in handling financial assets. Bank accounts, investment portfolios and retirement accounts are subject to probate.
Intangible assets
Probate includes intangible assets like intellectual property rights, patents, copyrights and royalties. This ensures a transfer of these valuable rights to the beneficiaries, preserving the legacy and intellectual capital of the deceased.
Business interests
If the deceased was a sole proprietor, partner or shareholder of a business, probate is important. The process focuses on the seamless continuation or liquidation of the business as per the decedent’s wishes or legal obligations.
Debts and liabilities
Probate not only addresses assets but also manages the deceased’s debts and liabilities. This includes outstanding mortgages, loans and other financial obligations. The process ensures that people use the estate’s assets to settle debts, with any remaining assets distributed among the heirs.
The time after a person’s death may seem overwhelming for everyone at first. However, there are still important items and assets that require attention. Recognizing the diverse nature of these assets leads to a fair approach when handling the deceased’s affairs.