Giving You Strength And Compassion On Your Legal Journey

Understanding probate and non-probate assets in North Dakota

On Behalf of | Aug 8, 2024 | Estate Administration

When it comes to estate planning, there is more to it than just writing a will. It requires an understanding of how different types of assets will be distributed when you pass away. Some of your properties may need to go through the court-supervised process of administering your estate called probate, while others can go directly to your beneficiaries. This distinction between probate and non-probate assets is crucial for effective estate planning.

Which assets go through probate?

Upon your passing, the court will step in to distribute some of your assets according to instructions in your will or the state’s laws in the absence of a valid will. In North Dakota, probate assets may include:

  • Sole-owned properties: This category encompasses any assets registered solely in your name, such as real estate, vehicles and bank accounts.
  • Personal belongings: These include items like jewelry, artwork, collectibles and other personal belongings that you own solely or have not designated to a beneficiary.
  • Intangible properties: These are stocks, bonds, patents and copyrights you have not transferred to a trust or assigned to a specific beneficiary.

If you have any of these assets, they must go through the probate process, which can be time-consuming and costly.

Which assets are safe from probate?

When you pass away, your non-probate assets can bypass the probate process, ensuring that they reach your intended beneficiaries quickly and efficiently. These include:

  • Jointly owned properties: If you own a home with your spouse as joint tenants, it will pass directly to them upon your passing.
  • Assets with beneficiary designations: Life insurance policies, retirement accounts and IRAs are set up to benefit specific individuals or entities directly.
  • Trust assets: Any property or assets you have placed in a trust will go directly to your intended beneficiaries, according to the trust’s terms, outside the probate process.

By strategically using these non-probate transfer methods, you can potentially streamline the inheritance process for your loved ones, reducing delays and costs associated with probate.

Why knowing the difference matters

Understanding the key differences between probate and non-probate assets is a crucial step in establishing a comprehensive and effective estate plan. Having this knowledge enables you to make informed decisions when it comes to structuring your plan and potentially simplifying the inheritance process for those you leave behind.