Any asset titled solely in the deceased person’s name, with no beneficiary designation and no survivorship arrangement, goes through probate. That is the short answer to what assets go through probate: individually owned bank accounts, real estate held as tenants in common, vehicles with no transfer-on-death registration, personal belongings, sole proprietorship assets, and even life insurance or retirement accounts when no living beneficiary is named. Assets that carry a named beneficiary, a joint owner with right of survivorship, or a trust as the title holder skip probate entirely.
The distinction matters because probate takes time and costs money. Knowing which category each asset falls into tells you whether the family will be waiting on a court or walking into a bank with a death certificate.
Individually Owned Bank and Investment Accounts
These are the most common probate assets. When a checking account, savings account, certificate of deposit, or brokerage account sits in only the deceased person’s name, the financial institution freezes the funds as soon as it learns of the death. The bank will not release anything to family members, no matter how close the relationship, until someone presents court-issued authority to act for the estate.
That authority is a document called Letters Testamentary when there is a valid will naming an executor, or Letters of Administration when there is no will and the court appoints an administrator. Either one grants the same core powers: access the accounts, pay the debts, distribute what remains. Once the executor has those letters and a certified death certificate, the bank unfreezes the accounts.
If the IRS has an outstanding tax debt against the decedent, a federal tax lien attaches to financial assets in the estate and takes priority over most other claims.1Internal Revenue Service. Understanding a Federal Tax Lien
Real Estate Held as Tenants in Common
Not all co-owned real estate avoids probate. The deed language is what controls. Property held as “tenants in common” carries no right of survivorship, so when one owner dies their fractional share does not pass automatically to the other owners. That share becomes part of the probate estate and transfers through the court.
A 50% tenant-in-common interest in a house, for example, sits in the probate estate until a judge oversees its transfer to the heir or beneficiary. The court record also keeps the chain of title clean. Without a probate decree confirming the transfer, title insurance companies and future buyers will flag the ownership history as defective, and the property becomes difficult to sell.
When co-owners cannot agree on what to do with the property, the court can order a partition sale that forces the property onto the market so each owner receives their share of the proceeds. Those disputes add legal costs on top of ordinary probate expenses.
Vehicles, Furniture, Jewelry, and Other Personal Property
Physical possessions without a title document still go through probate. Furniture, jewelry, artwork, antiques, electronics, clothing, and collectibles all qualify. The executor inventories these items and, for anything of meaningful value, establishes fair market value for the court record.
Federal regulations spell out when a professional appraisal is required. If the estate includes items with artistic or intrinsic value totaling more than $3,000, such as jewelry, paintings, antiques, coin collections, or silverware, a sworn appraisal by a qualified expert must accompany the estate tax return. Items in the same room valued at $100 or less each can be grouped together on the inventory rather than listed individually.2eCFR. 26 CFR 20.2031-6 – Valuation of Household and Personal Effects Appraisals for estate purposes typically run from a few hundred dollars to several thousand, depending on the type and volume of property.
Vehicles also go through probate when titled solely in the decedent’s name with no transfer-on-death designation. Most motor vehicle agencies will not issue a new title to a beneficiary or buyer without probate paperwork or, for smaller estates, an affidavit confirming the right to the vehicle.
Sole Proprietorships and Some Business Interests
A sole proprietorship has no legal existence separate from its owner. When the owner dies, the business effectively stops, and all of its assets and liabilities fold into the probate estate. Equipment, inventory, accounts receivable, and trade name rights are treated the same as any other probate asset. If the business has employees, ongoing contracts, or perishable inventory, the months-long probate timeline creates real operational problems.
Membership interests in a single-member LLC often follow a similar path, though the operating agreement may include transfer-on-death provisions. Partnership interests and shares in closely held corporations can also end up in probate when there is no buy-sell agreement or succession plan. The executor steps into the decedent’s shoes as owner, but operating agreements and shareholder agreements frequently restrict what the executor can actually do with that interest.
Life Insurance and Retirement Accounts Without a Living Beneficiary
Life insurance, 401(k)s, and IRAs are designed to bypass probate through beneficiary designations. The money goes straight to whoever is named on the account. But these assets fall into probate under two common scenarios: the account holder names their own estate as beneficiary, or no living beneficiary exists at the time of death.
The second scenario happens more often than people realize. A 401(k) participant names their spouse, the spouse dies first, and no one updates the designation or names a contingent beneficiary. When the account holder later dies, the plan’s default rules kick in and typically direct the funds to the estate. That means full probate, exposure to creditor claims, and delay before anyone receives the money.
For 401(k) plans, federal law provides a safeguard for married participants. Under ERISA, a surviving spouse is automatically entitled to the account balance unless they previously gave written, witnessed consent to a different beneficiary designation.3Office of the Law Revision Counsel. 29 U.S. Code 1055 – Requirement of Joint and Survivor Annuity and Preretirement Survivor Annuity IRAs carry no equivalent federal spousal protection, which makes outdated IRA beneficiary designations an especially common probate trap.
Once these funds enter the probate estate, they become available to satisfy the decedent’s debts, medical bills, and taxes before any beneficiary sees a dollar. A $100,000 life insurance policy that would have passed tax-free and creditor-proof directly to a named beneficiary can shrink significantly once it is filtered through the estate.
Digital Assets and Cryptocurrency
Cryptocurrency wallets, online brokerage accounts, digital media libraries, domain names, and social media accounts with commercial value all follow the same rule as any other individually held asset. If title sits with the decedent alone and no beneficiary is named, the asset is a probate asset.
The practical problem is access. Executors often do not know these assets exist, or cannot reach them without passwords and private keys. Most states have adopted some version of the Revised Uniform Fiduciary Access to Digital Assets Act, which gives executors legal authority to manage a decedent’s digital accounts. Legal authority is not the same as practical access. A cryptocurrency wallet secured by a private key that nobody else knows may be part of the estate yet permanently out of reach. The executor still has a duty to inventory and report these assets to the court.
Assets That Skip Probate
Several common arrangements move assets outside the probate estate automatically. Spotting them is often the difference between a bank visit and a court case.
Joint Tenancy With Right of Survivorship
When property is held in joint tenancy with right of survivorship, the surviving owner acquires the deceased owner’s share the moment death occurs. No court order needed. The surviving owner typically files a copy of the death certificate and a simple affidavit with the county recorder, and title updates. This applies to real estate, bank accounts, and brokerage accounts held this way. A will cannot override this transfer. Even if the deceased owner’s will leaves their share to someone else, the surviving joint tenant still gets it.
Payable-on-Death and Transfer-on-Death Accounts
Bank accounts with a payable-on-death designation and brokerage accounts with a transfer-on-death designation pass directly to the named beneficiary outside probate. The beneficiary presents a death certificate and valid identification to the financial institution. Depending on the state, there may be a short waiting period or the transfer happens immediately. These designations are free to set up at any bank or brokerage.
Transfer-on-Death Deeds for Real Estate
Roughly 30 states allow property owners to record a transfer-on-death deed naming a beneficiary for real estate. The deed has no effect during the owner’s lifetime, and the owner can revoke or change it at any time. When the owner dies, the beneficiary files an affidavit with the county recorder and takes title with no probate. In states that do not authorize these deeds, a living trust serves the same function for real estate.
Revocable Living Trusts
Assets held in a properly funded revocable living trust avoid probate because the trust, not the individual, holds legal title. During the grantor’s lifetime, they keep full control and can change anything. After death, the successor trustee distributes the trust assets according to the trust document with no court involvement. The key word is funded. A trust that exists on paper but was never funded with actual assets provides no probate avoidance. The grantor must transfer title of bank accounts, brokerage accounts, and real estate into the trust’s name during their lifetime for the strategy to work.
Retirement Accounts and Life Insurance With Named Beneficiaries
These bypass probate when a living beneficiary is properly designated. The beneficiary files a claim directly with the insurance company or plan administrator. The critical step is keeping designations current, especially after a divorce or a spouse’s death.
When Small Estates Can Skip Full Probate Anyway
Even assets that would normally go through probate may qualify for a shortcut when the estate is small enough. Every state offers some form of simplified procedure. The most common tool is a small estate affidavit: a sworn statement that the estate’s total value falls below the state threshold, which the heir presents directly to the bank or other institution holding the asset. No judge, no hearing.
The dollar thresholds vary. Some states set the cutoff as low as $15,000, while others allow simplified procedures for estates worth $150,000 or more. A handful of states also offer summary administration for mid-sized estates that do not qualify for the affidavit process but do not warrant full probate either. Most states require a waiting period of at least 30 to 45 days after the death before the affidavit can be used, and the affidavit generally works only for personal property. Real estate usually requires at least some court involvement unless a transfer-on-death deed or trust is already in place.
What Probate Actually Costs Those Assets
Probate typically takes between six months and two years, depending on the size and complexity of the estate, whether anyone contests the will, and how backed up the local court is. A straightforward estate with a valid will, cooperative heirs, and no creditor disputes can sometimes close in under a year. An estate with real estate in multiple states, business interests, or feuding family members can run far longer.
Costs come from several directions. Court filing fees generally range from a couple hundred to a couple thousand dollars, often scaled to the estate’s total value. Executor compensation is set by state law and varies widely. Some states use statutory fee schedules based on a percentage of the estate, while others allow “reasonable compensation” subject to court approval. Attorney fees follow a similar pattern. Professional appraisals for real estate, jewelry, art, or business interests add to the total, as do accounting fees for estate tax returns and the cost of a surety bond when the court requires one.
For a modest estate that moves through probate without complications, total costs might run 2% to 5% of the estate’s value. For large or contested estates, that percentage climbs. Those costs are the main reason estate planners push living trusts, beneficiary designations, and survivorship arrangements that keep assets out of probate in the first place.