RE: Real vs Personal Property in Probate

[paulb]

RE: Real vs Personal Property in Probate

What is the name of your state? Illinois

I am slightly confused by the question of "real" vs "personal" property that is listed on most forms to submit petition for probate. From my understanding, "real" property would consist of real estate (less any amount owed to a mortgage company), while personal property would include any assets titled in the decedent's name that would not transfer automatically to the beneficiary upon death. Now, how do assets which have a designated beneficiary factor into this? Does an IRA, Life Insurance policy which has a designated beneficiary have to be listed as "personal" property when submitting forms for petition to probate?

TIA

 

[I AM ALWAYS LIABLE]

What is the name of your state? Illinois

I am slightly confused by the question of "real" vs "personal" property that is listed on most forms to submit petition for probate. From my understanding, "real" property would consist of real estate (less any amount owed to a mortgage company), while personal property would include any assets titled in the decedent's name that would not transfer automatically to the beneficiary upon death. Now, how do assets which have a designated beneficiary factor into this? Does an IRA, Life Insurance policy which has a designated beneficiary have to be listed as "personal" property when submitting forms for petition to probate?

TIA

My response:

Assets with a beneficiary "by-pass" Probate. That's because at the exact moment of death, the decedent's assets immediately belong to the beneficiary as that beneficiary's sole and separate property.

For example, a Life Insurance policy is not listed in the Petition for Probate because the assets of the policy immediately pass to the named beneficiary. So, whomever is named gets the whole enchilada without having to wait for the Probate process to terminate.

IAAL