Is it true that certain property is excluded or exempt from probate?
The general rule is that all of the property individually owned by the decedent at the time of the decedent’s death is subject to probate administration. There are exceptions to this general rule, including the following: • Homestead Exception: The decedent’s primary residence (homestead) is excluded from probate administration. • Property Held in Joint Tenancy: Joint Tenancy a form of holding title to an asset. When one joint tenant dies, the property passes to the surviving joint tenant without probate administration. There are some potential problems with joint tenancy: -If the other joint tenant fails to survive you, probate will be necessary to determine who should receive the asset -Property held in joint tenancy does not receive a full stepped-up basis for capital gains tax purposes -Placing someone’s name on your property as a joint tenant in order to avoid probate may subject you to adverse gift tax consequences or may expose the property to the other joint tenant’s creditors
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- Is it true that certain property is excluded or exempt from probate?
