The idea of going to probate court may conjure up images of time-consuming work and court hearings. In fact, probate court cases generally do require a significant amount of time and energy from the parties involved. It is important to understand what is exempt from probate in California. For some families, state law may not require them to go through the probate court process.

A California probate lawyer can help families through the probate process. Hiring a skilled probate attorney can alleviate time and stress during an already emotional period.

What Is Exempt from the Probate Court Process?

While many estates must go through probate courts, not every deceased person’s assets and property do. In California, estates valued lower than $166,250 do not have to go through the probate process. These estates are considered small estates. To determine if the deceased’s estate is exempt, simply calculate the total value of bank accounts, properties, and other assets.

Social Security survivor benefits do not have to go through the courts. If you are eligible for those benefits, you can notify the government and begin collecting them immediately.

Three common types of assets that do not have to go through probate are joint tenancy, community property, and property that is held in a trust.

Joint Tenancy

This term refers to the legal arrangement between two people where they share property. These situations confer equal rights and obligations on both parties. These legal arrangements can exist between spouses, non-married couples, relatives, friends, and even business associates.

Joint tenancy creates a “right of survivorship” where the other party has an expectation that, if the other owner dies, the property will go to the surviving party. These types of arrangements do not have to go through the probate system or any court system. Property is often held in joint tenancy but it could be any financial asset.

Community Property

Also known as marital property, community property refers to any property owned by two people in a partnership, usually a married couple. Property acquired during a marriage is considered community property. Financial assets that name a clear beneficiary generally do not have to go through probate court. A shared bank account or brokerage account would be an example.

Property That Is Held in a Trust

By drafting a trust, a person can name a trustee as the beneficiary of an asset after your death. Following the death of that person, the property is entirely controlled by the trust’s terms. The beneficiary can transfer the funds without the need for court intervention.

Bank accounts held in the name of a trust are not subject to probate law. The trust must be operated within the wishes of the terms of the trust. The terms of the trust are still subject to court scrutiny. For example, a trust may grant a set amount of money for a grandchild. If the conditions of that trust are that funds will not be disbursed until the child turns 18, then the courts can enforce the terms of the trust.

The Importance of a Will

Settling estates is easier and less time-consuming when there is a properly drafted and executed will in place. As part of anyone’s estate planning process, having a will is crucial. The legally binding document adds clarity and direction for probate court proceedings. Large estates, even when there is a will, have to go through probate.

The courts will refer to the will when closing an estate. Although a will does not always allow heirs and beneficiaries to avoid going to probate court, a properly drafted will can save involved parties from having to litigate over the desires of the deceased.

FAQs

Q: Do All Estates Have to Go Through Probate in California?

A: No, not all estates go through probate in California. Small estates under a certain amount are exempt from this step. When calculating the value of the deceased’s account, include all assets and properties. If you are unsure, a probate court lawyer can make sure that the estate meets state guidelines for avoiding probate court.

Q: Which of the Following Assets Do Not Go through Probate?

A: Jointly owned assets generally transfer to the surviving co-owner upon the death of the other co-owner. If debts are owed on that asset, probate laws may apply. Community property is a type of asset that may not require probate court action. The courts may want to verify that these situations are truly exempt, so consult with an attorney.

Q: What Does a Probate Lawyer Charge in California?

A: Lawyers in California charge between $200 and $400 an hour, depending on their area of legal focus, experience, and which law firm they work for. Experienced law firms that have a track record of helping clients navigate the often-complex probate system often charge more for their time.

Q: Can Property Be Transferred Without Probate in California?

A: Property can be transferred without California’s probate courts if the property was owned in a legal arrangement where the co-owning survivor gains full ownership in the event that the other owner dies. One such arrangement is called joint tenancy. Small properties under a set amount may not require court action. Sweeney Probate Law provides legal counsel for clients on these probate-related matters.

Q: What Triggers Probate in California?

A: Probate in California is triggered by the filing of a petition in a probate court after someone dies. The value of the estate must be above a certain amount. Small estates are often exempt. Once the petition is filed, the probate court will schedule a hearing. Most families hire a probate lawyer to handle the probate process, which can be very complicated and time-consuming.

Schedule Your Probate Consultation Today

Not every family will have to settle the estate of a deceased relative using probate courts, but many will. Even if you do go to probate court, not every part of the estate may have to go through the courts. Sweeney Probate Law can help you navigate the often-complicated system. Our lawyers understand what types of assets and benefits, like social security survivor benefits, may not require the court’s involvement. Contact our office to schedule your appointment.