SMITH & GARG, LLC

By the Estate Planning Attorneys at Smith & Garg, LLC, serving The Woodlands, Spring, Houston, Conroe, Humble, Kingwood, Tomball, Cypress, Huntsville, Westchase, Southwest, Sugar Land, West Oaks, Alief, Memorial, River Oaks, Stafford, Katy, Missouri City. Sugarland, Richmond, Alief and other surrounding areas in North, Northwest, South and Southwest Houston.

Probate is the process in which a court presides over the payment of a deceased person’s final debts and the distribution of the estate’s assets. The interests of the beneficiaries and creditors of the estate are looked after by the court. This process is known as probate administration.

It is important to know that all property the deceased owned, or had an interest in, may not pass through his or her Will. In fact, only probate assets pass through Wills. Probate assets are those that are not non-probate assets. Non-probate assets pass through beneficiary designations. Examples of non-probate assets are KEOGHs, IRAs, pensions, profit sharing, insurance policies and beneficiary-designated accounts at financial institutions and 401(k) plans. These assets are transferred directly outside of court oversight from the company or bank to the beneficiary(ies) who is/are named in the policy or other documents. All probate assets must be listed with the court.

The types of non-probate assets listed above are those in which the testator has designated through the completion of a beneficiary designation card who will receive the benefits of that particular asset. The relationship between the account holder and the bank or financial institution is considered a one of contract. These types of assets do not have to be disclosed to the court during probate.

The attorneys at Smith & Garg will discuss how probate and non-probate assets are handled in you individual estate plan in order to make certain that all of your property passes as you want it to, whether by Will or beneficiary designation.

We invite you to contact us for a consultation. Call Smith & Garg, LLC at 1-877-517-4275 or complete our contact form.