Anytime a loved one passes away, the surviving family members are likely struggling with the loss. Several questions will typically arise when trying to deal with the aftereffects. One of those questions may be how can you avoid probate on bank accounts in California? This is a critical question to ask, and it may affect several members of the decedent’s family. An Ontario, California, probate attorney can be helpful in sorting through the probate process and preparing for court.

Bank Accounts That Avoid Probate

Certain types of bank accounts can avoid probate in California. Being aware of these types of accounts can help you avoid unnecessary probate:

• Jointly held accounts. Any accounts with joint ownership can be a strategic way of bypassing probate. There are, however, potential drawbacks to these kinds of accounts. For example, you may not have as much control, and you could be over-exposed to creditors.A typical example of a joint account is one between spouses. If one spouse dies, the funds can be directly claimed by the other spouse. This is also true in parent-child jointly-owned accounts. However, each account is unique, and there could be specific designations that hinder your ability to avoid probate. Have an attorney review your accounts before you start the probate process.
• Payable on death accounts. In these accounts, funds are automatically transferred to the beneficiary upon death. As long as the beneficiary designation is kept current, it can be another way to avoid probate.
• Transfer on death accounts. An account with a transfer-on-death designation transfers funds to the name of the beneficiary immediately upon the death of the owner. For example, if a parent has a savings account with $50,000 and their daughter is named as its beneficiary, the funds would be transferred to her after the bank receives proof of the parent’s death.
• Accounts owned by a trust. Any assets held under a trust are not subject to probate in California. The only drawback to trust-owned accounts is that they must operate in accordance with the trust agreement. They may not have the same level of flexibility as other accounts. For example, funds may be set to be disbursed to a grandchild, but not until they turn 18 years old.

Individual Bank Accounts

If the individual dies with a bank account owned solely by them and with no designated beneficiaries, the funds will likely proceed through probate. This exposes the assets held in the account to any creditors that come forward during the probate process. A probate attorney can help you determine if the account must go through probate.

Benefits of Avoiding Probate

It can be beneficial to avoid probate because you avoid the expenses and time it takes to disburse assets. Probate can be a time-consuming process with multiple parties involved. It can take a long time, potentially even years, to see a probate case to resolution. There are also attorney fees, court costs, and other out-of-pocket expenses you could incur. Avoiding probate can provide a quick and cheaper means of inheriting assets.

FAQs

Q: Will Banks Release Money Without Probate in California?

A: Yes, banks in California can release money without probate in California if the requirements have been met. If the bank account has a named beneficiary or is held jointly, funds could be released. Also, any payable-on-death (POD) accounts allow the account holder to maintain control of the funds until they die. Upon death, the funds can be claimed by the beneficiary by visiting the bank with acceptable proof of identification and the certificate of death.

Q: What Is the Probate Process in California?

A: The probate process in California includes filing a petition, proving the validity of the will if there is one, notifying any heirs or creditors, collecting and valuing the assets, paying off outstanding debts, and distributing the assets to close out the estate. This process can vary in length depending on the amount and complexity of the assets involved. One of the hardest parts of the probate process is valuing the assets, especially if there is art, collectibles, or other personal property.

Q: What Assets Avoid Probate in California?

A: Assets that typically avoid probate in California are living trusts, retirement assets, assets with beneficiary designations, and small estate affidavits. These assets will transfer automatically upon the death of the owner. Living trusts are exempt from court supervision when it comes to the distribution of assets. The trust should outline how and when the property will be distributed. There are other assets that can avoid probate, but it is on a case-by-case basis, and you should speak with a probate attorney.

Q: How Do You File for Probate in California?

A: To file for probate in California, you must first file a petition with the California Superior Court in the county of residence. This should outline details about the deceased, the estate, potential heirs, and the executor or administrator. After filing, a hearing will be scheduled for you to appear before the court. You should consult with a qualified probate attorney before filing the petition to ensure you have legal guidance and are in compliance with all laws and regulations.

Q: How Can a Probate Attorney Help Me?

A: A probate attorney can help you in several ways. From navigating the complexities of California probate court to ensuring proper administration of the estate, an attorney could be a trusted resource throughout the process. An attorney’s tasks include identifying estate assets, determining inheritance taxes, ordering appraisals and asset valuations, preparing and filing court documentation, and retitling assets in the name of beneficiaries. You may need an attorney if the estate is complicated or there isn’t a will in place.

Attorneys Ready to Help

At Sweeney Probate Law, we have the experience and knowledge needed to help through probate. With our compassion, dedication, and determination, you can rest assured that you are getting the quality legal advice and representation you deserve. Our firm has an outstanding reputation across the state, and we pride ourselves in helping people resolve their legal cases, especially when it comes to probate court. Contact us today to speak with a member of our team.