When someone dies and leaves behind owned items without provision for distribution in a Will or by the title of the property with a joint owner or beneficiary listed, they may undergo the probate process. The probate court will remove the decedent’s name as owner of these estate assets and transfer them to those who have a rightful claim or to designated beneficiaries. Before making any major decisions about how to go through probate, it’s always a good idea to educate yourself about the process. Understanding which assets go through probate can help simplify your estate planning decisions.

What Assets are Subject to Probate?

Assets under the sole ownership of the decedent without a designated beneficiary, not payable on death, not jointly owned, and not handled in a Living Trust are subject to probate.

Such property could include:

Vehicles
Real estate
Bank or investment accounts
Stocks and bonds
Some personal property

Probate rules also affect assets considered tenants in common. If property is titled Tenants in Common, the decedent’s share of the property does not automatically go to the co-owners. Instead, it would go to a beneficiary named in a Will or Trust, or it would go to the decedent’s heirs per the state’s probate laws.

Are Household Items Affected by Probate Law in Arizona?

In Arizona, household items without any form of title generally do not trigger the probate process or rarely do.

Typical items considered as household goods include:

Clothing
Furniture
Artwork and antiques
Curated collections
Jewelry

Arizona law provides simplified procedures for transferring personal property of small value without probate. These items often have more sentimental value than monetary value, and the state recognizes the importance of allowing families to distribute them without the complexities of probate.

However, it’s still important to consider how you want these items distributed after your passing. It can save your family a lot of stress to name specific items that you have promised to someone or items that hold high value in your estate planning documents. The executor of the estate can distribute those assets according to your wishes and avoid any family conflicts that may hold up the probate process.

Which Assets Do Not Fall Under Probate?

Several types of assets are not subject to the probate process and do not fall under the earlier category listed. The common theme with most of the assets below is that a beneficiary has been designated through the proper channels, such as a transfer on death (TOD) form, payable on death (POD) form, or even the Department of Motor Vehicle beneficiary designation form.

Specifically, the following assets would likely avoid probate:

Life insurance or 401(k) accounts with a named beneficiary
Living Trust assets
Registered transfer on death (TOD) or payable on death (POD) securities, US bonds, and other funds
Pension plan funds
Remaining salary, commissions, or wages still owed to the deceased
Vehicles and watercraft with a transfer on death beneficiary named

If you do not check on your beneficiary designations at least every 3 to 5 years, these assets may not go to the person you intend. After family changes like divorce, death, the birth of a child, adoption of a child, marriage, etc., you will need to update your beneficiaries to ensure these assets avoid probate and go to the right people.

Additional Asset Types That May Avoid Probate

Below are three additional asset types with examples that typically avoid the probate process after an individual dies.

Jointly Owned Assets

Jointly owned assets involve assets that have shared ownership with another person. These assets could include:

Motor vehicles and watercraft
Real estate property
Bank and related financial accounts.
Property with titling documentation

Basically, any asset that has a co-owner named on the title or on the account and is not titled “tenants in common” as mentioned earlier. These types of property usually transfer ownership upon death. This transference of ownership supersedes a Will designating different beneficiaries for the jointly owned asset.

Designated Beneficiaries

While many assets allow the owner to designate a beneficiary in case of death, which can help to avoid the probate process, there are a few situations that can require the probate process anyway.

Incapacitation of the beneficiary
The beneficiary precedes the owner in death
At the time of death, the designated beneficiary is a minor
Your estate is the beneficiary

Assets in a Trust

Normally, a Living Trust can avoid probate by naming assets within it. This approach doesn’t work if the Trust is a named beneficiary of your Will. People do this to ensure that their property and/or assets are processed through their Trust; however, in order for the transfer from the name of the decedent to the Trust, those assets will have to go through probate first. Only after that is complete could a Trust go into effect. Keeping one’s Living Trust up-to-date regarding assets and new property acquisitions helps to avoid this situation.

Prepare and Plan Ahead in Distributing Your Household Assets

While many assets can avoid probate with a clear estate plan, it’s important to understand how different types of property are treated under Arizona law. Household items, although they may not trigger probate, still require consideration in your estate planning to prevent potential disputes among family members. Consulting an experienced estate planning and probate attorney can help ensure all your assets are handled as you intend and minimize any potential complications. Proper planning now can help reduce stress and prevent disputes among loved ones later. Whether you’re new to estate planning or want to update your current plan to avoid probate, call (480) 924-4424 today to schedule a free family legal session to make a custom estate plan for you!

Are Household Items Considered a Part of Probate?