What Assets Go Through Probate in Illinois?

When a person passes away in Illinois, their estate may need to go through probate, a legal process where the court oversees the distribution of assets to heirs and beneficiaries. However, not all assets are subject to probate. Understanding which assets must go through this process can help families plan effectively and avoid unnecessary delays.

Probate vs. Non-Probate Assets

Probate assets are those owned solely by the deceased person at the time of their death without a designated beneficiary. These assets require court involvement to determine rightful ownership and distribute them according to the terms of a will or Illinois intestacy laws if no will exists. Non-probate assets, on the other hand, transfer automatically to beneficiaries and do not require court supervision.

Common Probate Assets in Illinois

Several types of assets typically go through probate in Illinois. These include:

• Solely Owned Real Estate: If a property was owned in the deceased person’s name alone, it must go through probate before it can be transferred to heirs. However, if the real estate is jointly owned with rights of survivorship, it bypasses probate and passes directly to the surviving owner.
• Bank Accounts Without a Payable-on-Death (POD) Designation: Checking, savings, or investment accounts that do not have a named beneficiary will be subject to probate. Adding a POD beneficiary allows these accounts to transfer directly upon death.
• Personal Property: Items such as vehicles, jewelry, collectibles, and household furnishings that are individually owned and not designated to a specific heir in a trust or other legal document must go through probate.
• Life Insurance and Retirement Accounts Without Named Beneficiaries: If a life insurance policy, pension, or retirement account does not have a valid beneficiary designation, the proceeds will be subject to probate and distributed according to the will or intestacy laws.
• Stocks and Bonds Not Held in a Transfer-on-Death (TOD) Account: If an investment account does not include a TOD beneficiary, the shares must go through probate before being transferred to heirs.

How to Avoid Probate in Illinois

While probate is a common legal process, many people prefer to minimize or avoid it to simplify estate administration. Some ways to keep assets out of probate include:

• Establishing a Living Trust: Placing assets in a revocable living trust ensures they transfer directly to beneficiaries without court involvement.
• Designating Beneficiaries: Naming beneficiaries on accounts such as life insurance policies, retirement plans, and bank accounts prevents these assets from becoming probate property.
• Joint Ownership with Right of Survivorship: Holding property jointly with another person allows it to pass directly to the co-owner upon death.

By understanding which assets require probate in Illinois, individuals can take proactive steps to ensure a smoother transfer of their estate to their loved ones.

Contact Bielski Chapman, LTD.

Navigating the probate process can be complex and overwhelming, especially during a time of grief. At Bielski Chapman, LTD., we are here to guide you through every step of the way. Whether you’re dealing with probate, trust administration, or have questions about estate planning, our team is ready to assist you.

Contact us today to schedule a consultation and ensure that your estate planning needs are met with precision and care. Let us help you secure peace of mind for the future.