Intestacy Laws Part Two: Understanding Probate & Asset Distribution

In our last blog post, Intestacy Laws: What Happens if you Die Without a Will in Wisconsin, we talked about what intestacy laws are and how they come into play when someone dies without a will. Today, we’re going to talk about probate and asset distribution. What is probate? What assets are subject to probate? Which assets do not go through probate? How can you avoid probate through careful estate planning? We’ll answer all of these questions and more in today’s blog post.

If you’re ready to make a will, contact Margerie Law today. I’m Paul Margerie. As an experienced greater Milwaukee estate planning lawyer, I’ve helped people all across the region craft custom estate plans that protect their future and, most importantly, that of their families. Keep reading to learn more about probate, how it interacts with intestacy laws, and why you should make a will today.

What is Probate? 

Probate is the legal process of authenticating a will, confirming an executor/personal representative, and distributing a deceased person’s assets. If the deceased person left a will, the probate court will follow the instructions in the will to distribute the assets. If the deceased person did not leave a will, the probate court will use what are called “intestacy laws,” or laws that govern what to do if someone dies without leaving a will, to determine how to distribute the assets.

Not all assets are subject to probate. Keep reading to learn more.

What Assets are Subject to Probate? 

In general, all assets that are not jointly owned and all assets that do not have a named beneficiary are subject to probate. This includes property such as real estate, personal property, and vehicles. It also includes financial assets such as bank accounts, investment accounts, and life insurance policies that do not have a named beneficiary.

Which Assets Do Not Go Through Probate? 

There are certain types of assets that do not go through probate. These include jointly owned assets, assets with named beneficiaries, and some types of trusts.

Jointly owned assets are any assets that are owned by two or more people, such as a home or business. These assets typically pass to the surviving owner or owners outside of probate.

Assets with named beneficiaries are any assets that have a specific person or persons named as the beneficiary. These may include life insurance accounts, bank accounts, and investment accounts. These assets typically pass to the named beneficiary or beneficiaries outside of probate.

Any assets held in certain types of trusts are also not subject to probate. These include living trusts and certain types of irrevocable trusts.

How to Avoid Probate

One of the best ways to avoid a lengthy and stressful probate process is to have certain estate planning documents in place. By working with an estate planning lawyer, you can structure your assets in such a way that they will not be subject to probate. For example, you can transfer ownership of your assets to a living trust or set up an irrevocable trust. You can also name beneficiaries on your financial accounts and designate a payable-on-death beneficiary for your life insurance policy.

Why It’s So Important to Make a Will 

All of these questions about probate truly mean little if you don’t have a will. A will gives you the opportunity to name an executor/personal representative of your choice and to specifically state how you would like your assets to be distributed upon your death. If you die without a will, the probate court will use intestacy laws to determine how to distribute your assets. This could result in your assets being distributed in a way that you would not have wanted. It could also amplify the stress placed on your loved ones as they try to navigate the court system.

Ready to Make a Will? Contact Margerie Law Today. 

I’m Estate Planning Attorney Paul Margerie, and I’m here to help you. I specialize in helping people make Wills, Trusts, Powers of Attorney, and other estate planning documents. If you’re ready to make a will or if you have any questions about estate planning, contact Margerie Law today.