What Assets Have to Go Through Probate in Maryland…and What Assets Don't?
One of the most common questions families ask after losing a loved one is: "Does everything have to go through probate?" The answer is no.
In fact, many assets can pass directly to beneficiaries without ever going through the Maryland probate process. Understanding the difference between probate and non-probate assets can help families avoid confusion, set realistic expectations, and better understand what comes next.
What Are Probate Assets?
Probate assets are generally any assets that were owned solely by the deceased person and do not have a designated beneficiary or another automatic method of transfer.
Because there is no built-in mechanism for transferring ownership, these assets typically must go through the probate process before they can be distributed to heirs.
Common probate assets may include:
A house titled solely in the deceased person's name
Individual bank accounts without beneficiaries
Vehicles titled solely in the deceased person's name
Personal belongings, jewelry, and collectibles
Stocks or investment accounts without transfer-on-death designations
These assets become part of the probate estate and are managed by the Personal Representative appointed through the Maryland probate process.
What Are Non-Probate Assets?
Non-probate assets pass automatically to another person when the owner dies. Because ownership transfers by contract, beneficiary designation, or joint ownership, these assets generally do not need court involvement.
This is often welcome news for families because non-probate assets can typically be transferred more quickly than probate assets.
Let's look at some common examples.
Jointly Owned Property
The way property is titled can have a significant impact on whether probate is required.
In Maryland, many married couples own real estate as "joint tenants with right of survivorship" or as "tenants by the entirety." When one owner passes away, the surviving owner usually becomes the sole owner automatically.
For example:
Imagine a husband and wife own their home together with rights of survivorship. If one spouse dies, the home generally transfers directly to the surviving spouse without going through probate.
However, if the deceased person owned the property alone, probate may be necessary to transfer ownership.
This is one reason why reviewing property titles is an important part of estate planning.
Life Insurance Proceeds
Life insurance is often one of the easiest assets to transfer after death. If the policy names a living beneficiary, the insurance company generally pays the proceeds directly to that person.
Because the money passes according to the beneficiary designation, it usually does not become part of the probate estate.
For example:
If a mother names her daughter as the beneficiary of a life insurance policy, the daughter can typically receive the proceeds directly from the insurance company after submitting the required paperwork.
There is an important exception, however.
If no beneficiary is named, or if the estate itself is named as the beneficiary, the proceeds may become part of the probate estate.
Retirement Accounts and Beneficiary Designations
Many retirement accounts avoid probate entirely.
This includes accounts such as:
401(k) plans
Traditional IRAs
Roth IRAs
Pension benefits
These accounts generally pass directly to the beneficiaries listed on the account paperwork.
Unfortunately, many people assume their Will controls these assets. In reality, the beneficiary designation usually takes precedence.
That means if your Will says one thing but your retirement account lists someone else as the beneficiary, the account will typically pass to the named beneficiary.
This is why keeping beneficiary forms updated is so important.
Trust Assets
Assets held in a trust are typically designed to avoid probate. When property is properly transferred into a revocable living trust during the owner's lifetime, the trust continues to control those assets after death.
The successor trustee can usually manage and distribute trust assets without opening a probate estate.
Trust assets may include:
Real estate
Investment accounts
Bank accounts
Business interests
However, simply creating a trust is not enough.
Assets must actually be transferred into the trust. If assets remain titled in an individual's name rather than the trust's name, probate may still be required.
Bank Accounts with Payable-on-Death Beneficiaries
Many Maryland banks allow account owners to add a Payable-on-Death (POD) beneficiary. A POD designation allows the account to transfer directly to the named beneficiary when the owner dies.
For example:
A father may list his son as the POD beneficiary on a savings account. Upon the father's death, the son can claim the funds directly from the bank without waiting for probate to conclude.
This simple planning tool can help families access funds more quickly when they need them most.
Maryland-Specific Considerations
Maryland offers procedures for both regular estates and small estates, depending on the value of probate assets. Many families are surprised to learn that the size of the probate estate is determined by the value of probate assets, not necessarily the total wealth of the deceased person.
For example, someone could have substantial life insurance and retirement accounts that pass outside probate, while having only a modest probate estate.
Another important point is that each asset must be reviewed individually. Families often assume that either everything goes through probate or nothing does. In reality, most estates contain a combination of probate and non-probate assets.
Determining which assets fall into each category is often one of the first steps in administering an estate.
The Bottom Line
When a loved one passes away, not every asset has to go through probate in Maryland.
Assets that are jointly owned, held in trust, have named beneficiaries, or include payable-on-death designations can often transfer directly to heirs. On the other hand, assets owned solely by the deceased without a beneficiary designation typically require probate administration.
Because every estate is different, families should carefully review how each asset is titled and whether beneficiary designations are in place.
If you're unsure whether probate is required or need help navigating the estate administration process, speaking with an experienced Maryland probate attorney can provide clarity, reduce stress, and help ensure that assets are transferred properly.
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Let Atkinson Law Help You Navigate Probate
At Atkinson Law, we help families throughout Maryland understand their rights, fulfill their legal obligations, and resolve probate matters with clarity and confidence.
Whether you have questions about opening an estate, serving as a personal representative, or resolving disputes between beneficiaries, our experienced team is here to help.
If you need help with the Maryland probate process, contact Atkinson Law today at www.atkinsonlawyers.com or call our office (410) 882-9595 to schedule a consultation and get the guidance you need during this difficult time.