What assets do and do not go through probate in Wisconsin?
When someone passes away, their assets are typically distributed through a legal process known as probate. In Wisconsin, understanding which assets go through probate and which do not is crucial for estate planning and settlement. Let's delve into the specifics of what assets are subject to probate and those that are exempt in the state of Wisconsin.
Assets That Go Through Probate
Assets that are solely owned by the deceased individual and do not have a designated beneficiary or joint owner usually go through probate. These assets include:
Real estate owned solely by the deceased
Bank accounts solely in the deceased's name
Investment accounts held solely by the deceased
Personal belongings and valuable items
Assets That Do Not Go Through Probate
Some assets bypass the probate process in Wisconsin. These include:
Assets held in a living trust
Proceeds from life insurance policies with named beneficiaries
Retirement accounts with designated beneficiaries
Jointly owned property with rights of survivorship
Handling of Assets During Probate
During probate, the court oversees the distribution of assets to pay off debts and taxes before transferring the remaining assets to the beneficiaries. The process can be time-consuming and costly, making it essential to plan your estate carefully to minimize probate involvement.
Wisconsin Legal Code on Probate
The probate process in Wisconsin is governed by Chapter 851 of the Wisconsin Statutes. This legal code outlines the procedures for administering estates, appointing personal representatives, and resolving disputes related to probate.
Strategies to Avoid Probate
Given the potential drawbacks of probate, individuals may consider various strategies to avoid or minimize probate involvement, such as:
Creating a revocable living trust
Designating beneficiaries on accounts and policies
Establishing joint ownership with rights of survivorship
Making lifetime gifts to reduce the size of the estate
Final Tips for Estate Planning in Wisconsin
Understanding the probate process and the treatment of assets in Wisconsin is essential for effective estate planning. By carefully structuring your assets and considering probate-avoidance strategies, you can streamline the distribution of your estate and minimize potential complications for your loved ones.
Buried in Work's Additional Resources
Buried in Work provides Wisconsin state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.