When a person passes away, some assets must go through probate, while others transfer directly to beneficiaries. In Ohio, certain assets avoid probate, allowing heirs to receive them faster and without court involvement. Understanding which assets bypass probate can help you plan efficiently.
Jointly owned property
Assets owned jointly with rights of survivorship pass directly to the surviving owner. This includes real estate, bank accounts, and vehicles with joint ownership. The surviving owner simply needs to provide a death certificate to claim full ownership.
Payable-on-death and transfer-on-death accounts
Bank accounts, retirement funds, and investment accounts with payable-on-death (POD) or transfer-on-death (TOD) designations go directly to the named beneficiary. Ohio also allows TOD deeds for real estate and TOD titles for vehicles, ensuring smooth transfers.
Life insurance and retirement accounts
Life insurance policies and retirement accounts, such as 401(k)s and IRAs, have designated beneficiaries. These funds go directly to the named individuals without probate, as long as beneficiaries are properly listed. Keeping these designations updated helps avoid complications.
Trust assets
Assets placed in a living trust bypass probate since the trust owns them. Upon death, the successor trustee distributes them according to the trust’s terms. This method allows for privacy and efficient asset distribution.
Assets held in survivorship tenancy
Ohio recognizes survivorship tenancy, which allows real estate owned by multiple people to transfer directly to the surviving owners. This applies when the property title specifically includes a survivorship designation.
Why avoiding probate matters
Probate can be time-consuming and costly. Using non-probate transfer methods can help heirs receive their inheritance faster and with fewer legal hurdles. Proper estate planning ensures assets go to the right people with minimal delay.