What Assets Go Through Probate in California? Complete Guide 2025

"Do I need to go through probate for my mother's house? What about her bank accounts?"

As a Glendale probate attorney, this is one of the most common questions I hear from families dealing with a loved one's death. The answer depends entirely on how assets were titled and whether beneficiaries were designated.

Understanding which assets go through probate—and which don't—is critical for both families handling an estate and anyone doing estate planning to help their family avoid probate.

This comprehensive guide explains exactly which assets require California probate, which assets pass outside probate, the $184,500 threshold that matters, and proven strategies to keep assets out of probate entirely.

What Does "Going Through Probate" Mean?

Probate is the court-supervised legal process of:

• Validating a will (if one exists)
• Appointing an executor or administrator
• Identifying and inventorying assets
• Paying debts and taxes
• Distributing remaining assets to beneficiaries

California probate typically takes:

• Timeline: 12-18 months minimum
• Cost: $20,000-$100,000+ in fees
• Public record: Court files are accessible to anyone

Assets that "go through probate" must be transferred through this formal court process.

Assets that "pass outside probate" transfer directly to beneficiaries without court involvement.

The $184,500 Threshold

California Probate Code Section 13100

If total probate assets are worth $184,500 or less, heirs can use simplified procedures instead of formal probate:

• Small estate affidavit
• Affidavit for Real Property (if real estate under $61,500)

If probate assets exceed $184,500, formal probate is required.

Note: This threshold is for probate assets only. Non-probate assets don't count toward this limit.

Assets That GO THROUGH Probate

1. Real Estate in Deceased's Name Alone

Probate required if:

• Deed shows decedent as sole owner
• Titled as "tenants in common" (not joint tenancy)
• No transfer-on-death deed
• Not held in trust

Examples:

• House owned solely by decedent
• Vacant land in decedent's name
• Rental property without beneficiary designation
• Timeshare in individual name

Even if will says "leave house to daughter," probate is required to transfer title.

2. Bank Accounts in Sole Name (No Beneficiary)

Probate required if:

• Account in decedent's name only
• No "payable on death" (POD) beneficiary
• Not joint account with right of survivorship

Examples:

• Checking account: "John Smith"
• Savings account without POD designation
• Certificates of deposit (CDs) without beneficiary

The bank cannot release funds without probate.

3. Investment Accounts Without Transfer-on-Death

Probate required if:

• Brokerage account in sole name
• No "transfer on death" (TOD) beneficiary
• Individual account (not joint)

Examples:

• E*TRADE account: "Mary Johnson"
• Vanguard account without TOD
• Individual stock certificates

4. Vehicles in Decedent's Name Only

Generally probate required unless using simplified DMV procedures.

Exception: California allows simplified transfer for vehicles if estate qualifies for small estate procedures.

Probate needed for:

• Cars, trucks, motorcycles
• Boats
• RVs
• Aircraft

Without additional owners or TOD beneficiary.

5. Business Interests Without Succession Plan

Probate required for:

• Sole proprietorships
• Partnership interests without buy-sell agreement
• LLC membership interests in individual name
• Corporate stock in individual name
• Professional practices

6. Personal Property in Deceased's Name

Probate may be required for:

• Jewelry
• Art and collectibles
• Furniture and household items
• Valuable personal effects

Practical reality: Small personal items often distributed informally, but technically should go through probate if estate exceeds $184,500.

7. Money Owed to Decedent

Probate required to collect:

• Promissory notes payable to decedent
• Lawsuit settlements
• Unpaid wages or commissions
• Security deposits
• Tax refunds (sometimes)

8. Intellectual Property Rights

Probate required for:

• Copyrights
• Patents
• Royalty rights
• Licensing agreements

9. Cryptocurrency in Individual Wallets

Probate likely required if:

• Crypto held in personal wallet (not exchange)
• No beneficiary designation
• Access requires private keys

Practical challenge: Locating and accessing crypto can be difficult.

Assets That DO NOT Go Through Probate

1. Joint Tenancy Property (With Right of Survivorship)

Passes automatically to surviving joint tenant(s).

Requirements:

• Deed or title must specify "joint tenancy"
• Must say "with right of survivorship"
• Surviving owner inherits automatically

Examples:

• House: "John Smith and Mary Smith, as joint tenants"
• Bank account: "Joint tenants with right of survivorship"

Process:

• Record death certificate with county recorder
• Property passes to survivor immediately
• No probate required

Important: If all joint tenants die, probate is required.

2. Community Property with Right of Survivorship

California allows this special title form.

Passes automatically to surviving spouse without probate.

Requirements:

• Must be married or registered domestic partners
• Deed must say "community property with right of survivorship"

Advantage over regular community property: Regular community property may require spousal property petition; this form passes automatically.

3. Assets in Living Trust

Trust assets avoid probate entirely.

If property titled:

• "John Smith, Trustee of the Smith Family Trust"
• Assets held in trust name

At death:

• Successor trustee takes over
• Distributes assets per trust terms
• No court involvement (trust administration is private)

Most effective probate avoidance strategy.

4. Payable-on-Death (POD) Bank Accounts

Bank accounts with POD beneficiaries pass directly to beneficiaries.

How it works:

• Account owner designates beneficiary on bank form
• Account remains in owner's control during life
• At death, beneficiary presents death certificate to bank
• Bank transfers funds directly to beneficiary

Also called: Totten trust, in trust for (ITF) account

5. Transfer-on-Death (TOD) Investment Accounts

Brokerage accounts with TOD beneficiaries pass outside probate.

Process:

• Owner completes TOD registration form
• Beneficiary has no rights until owner's death
• At death, beneficiary provides death certificate
• Assets transfer directly

California law allows TOD registration for stocks, bonds, and brokerage accounts.

6. Retirement Accounts with Beneficiary Designations

Pass directly to named beneficiaries:

• 401(k) plans → To designated beneficiary
• IRA accounts → To designated beneficiary
• 403(b) plans → To designated beneficiary
• Pension benefits → Per plan rules

Critical: Beneficiary designation controls, even if will says something different.

Common problem: Outdated beneficiary designations (ex-spouse still listed).

7. Life Insurance Policies with Named Beneficiaries

Death benefits pass directly to beneficiaries.

Process:

• Beneficiary files claim with insurance company
• Provides death certificate
• Receives proceeds directly
• No probate required

Exception: If estate is named beneficiary, proceeds go through probate.

8. Transfer-on-Death Deeds for Real Estate

California allows TOD deeds (California Probate Code Section 5600).

How it works:

• Owner records revocable TOD deed
• Property stays in owner's control during life
• Owner can revoke anytime
• At death, property passes to named beneficiary
• Beneficiary records death certificate

Advantages:

• Avoids probate
• Retains full control during life
• Can be changed anytime
• Lower cost than trust

Limitations:

• Only for owner-occupied residential property (1-4 units)
• Can't use for rental or commercial property
• Can trigger property tax reassessment
• Limited protection compared to trust

9. Property Held in Survivorship Forms

Special title forms that avoid probate:

• Tenancy by the entirety (limited California recognition)
• Joint tenancy
• Community property with right of survivorship

10. Assets With Contractual Beneficiaries

Any asset with valid beneficiary designation passes outside probate:

• Annuities
• Certain bonds (with TOD)
• Credit union accounts with POD
• Some club memberships with transfer rights

Special Situations and Grey Areas

Community Property (Regular, Without Right of Survivorship)

California community property without WROS designation:

Does it require probate? Sometimes yes, sometimes no.

Options for surviving spouse:

1. Spousal Property Petition (simplified procedure)
2. Full probate (if other issues exist)
3. Small estate procedures (if under threshold)

Not automatic transfer like joint tenancy.

Jointly Owned Property Without "Right of Survivorship"

"Tenants in common" ownership:

Probate required for deceased's share.

Example: Property owned 50/50 as tenants in common.

• One owner dies
• Deceased's 50% goes through probate
• Surviving owner keeps their 50%

Tenancy in common is default in California unless deed specifies joint tenancy.

Property in Decedent's Trust Not Properly Funded

If trust exists but property wasn't transferred to it:

Probate required because property is still in individual name.

Common issue: Trust created but real estate never deeded to trust.

Solution during life: Pour-over will (sends probate assets to trust after probate).

Property Outside California

California probate only covers California property.

Out-of-state real estate requires:

• Ancillary probate in that state, OR
• Avoid by holding in trust

Property Acquired After Trust Funded

Property acquired after trust created:

Requires probate unless:

• Specifically transferred to trust
• Has beneficiary designation
• Held in joint tenancy

Retirement Accounts With No Beneficiary

If retirement account has NO designated beneficiary:

Passes to estate → Requires probate

Also triggers worst tax consequences (must be distributed quickly, losing tax deferral).

Vehicles: Special California Rules

California allows simplified transfer for vehicles if:

• Estate qualifies for small estate procedures (under $184,500)
• Vehicle value under certain threshold

DMV Form: REG 5 (Affidavit for Transfer Without Probate)

If estate exceeds threshold: Vehicle technically requires probate, though often transferred informally.

How to Determine If Probate Is Required

Step 1: Make Complete Asset List

List every asset decedent owned:

Asset	Title/Ownership	Estimated Value	Beneficiary?
House	Individual name	$800,000	None
Bank account	POD to daughter	$50,000	Yes
IRA	TOD to son	$200,000	Yes
Car	Individual	$25,000	None

Step 2: Identify Non-Probate Assets

Remove from probate calculation:

• Joint tenancy property
• Assets with beneficiaries
• Trust assets
• All non-probate transfers

Step 3: Calculate Total Probate Assets

Add up remaining assets in individual name:

From example above:

• House: $800,000 (no beneficiary)
• Car: $25,000 (no beneficiary)
• Total probate assets: $825,000

Conclusion: Exceeds $184,500 → Formal probate required

Step 4: Consider Simplified Procedures

If total is $184,500 or less:

• Small estate affidavit
• Simplified procedures
• No formal probate

Strategies to Avoid Probate

Strategy #1: Create Living Trust

Most comprehensive solution.

How it works:

• Transfer all assets to trust
• You remain trustee during life
• Successor trustee takes over at death
• Assets distributed per trust terms
• No probate required

Best for: California homeowners, anyone with assets over $200K

Strategy #2: Add Transfer-on-Death Designations

For specific assets:

• Bank accounts → Add POD beneficiary
• Investment accounts → Add TOD beneficiary
• Consider TOD deed for real estate (if eligible)

Advantage: Simple, low-cost, retains full control

Disadvantage: Less comprehensive than trust, no incapacity planning

Strategy #3: Convert to Joint Tenancy

Add joint owner with right of survivorship.

Caution:

• Joint owner has immediate rights to property
• Can't be undone without joint owner's consent
• May have gift tax implications
• Property becomes joint owner's community property if they're married

Use carefully and with legal advice.

Strategy #4: Life Estate Deeds

Transfer property but retain life estate:

• You live in/use property during life
• Property passes to remainder beneficiary at death
• Avoids probate

Downsides:

• Can't sell easily without remainder beneficiary's consent
• Property tax issues
• Less flexible than trust

Strategy #5: Beneficiary Designations on All Eligible Assets

Maximum use of beneficiary designations:

• Life insurance
• Retirement accounts
• Bank accounts (POD)
• Investment accounts (TOD)
• Any asset allowing beneficiary designation

Remember: Keep beneficiaries updated!

Strategy #6: Gift Assets During Life

Transfer property before death:

• No longer in your estate at death
• No probate for gifted assets

Consider:

• Gift tax rules
• Loss of control
• Medicaid lookback (if relevant)

Not usually recommended as primary strategy.

Strategy #7: Small Estate Planning

If estate under $184,500:

• May not need extensive planning
• Small estate procedures available
• Consider POD/TOD for convenience

Common Probate Avoidance Mistakes

Mistake #1: Failing to Fund Trust

Creating trust but not transferring assets defeats the purpose.

All assets must be retitled to trust to avoid probate.

Mistake #2: Outdated Beneficiary Designations

Most common issue I see:

Ex-spouse still listed on 401(k) 10 years after divorce.

Beneficiary designations override will.

Mistake #3: Assuming Joint Accounts Avoid Probate for Everyone

Adding child as joint owner on account:

• Child has immediate access
• Funds become child's if you don't spend them
• Other children may not receive fair share
• May cause gift tax issues

Better: POD designation

Mistake #4: No Plan for Out-of-State Property

Vacation home in another state requires ancillary probate unless held in trust or joint tenancy.

Mistake #5: DIY Estate Planning Without Full Understanding

Using online forms without legal advice risks:

• Invalid documents
• Incorrect titling
• Unintended tax consequences
• Assets not properly covered

Frequently Asked Questions

What if someone dies with both probate and non-probate assets?

Non-probate assets transfer directly to beneficiaries. Probate assets go through probate. This is common.

Do all assets have to go through probate if one asset requires it?

No. Only assets in individual name without beneficiaries require probate. Other assets transfer outside probate.

How do I know how property is titled?

Check deed (for real estate), account statements, title documents. County recorder has property records. Banks can provide account registration.

Can I avoid probate with just a will?

No. A will does NOT avoid probate. Wills must be probated. Only trusts and beneficiary designations avoid probate.

What about property in an LLC?

If LLC membership interest is in your individual name, it goes through probate (unless in trust or other arrangement).

Do retirement accounts ever go through probate?

Only if estate is named beneficiary or no beneficiary designated. Otherwise they pass directly to beneficiaries.

What happens if property is titled incorrectly?

May require probate even if you intended to avoid it. This is why proper titling is critical.

Related Articles

Learn more about California probate:

• How to Avoid Probate in California - 7 comprehensive strategies to keep assets out of probate.

• How Much Does Probate Cost in California? - What you'll pay if assets do go through probate ($20K-$100K+).

• California Small Estate Affidavit - Simplified procedure for estates under $184,500.

• Trust Administration vs. Probate California - Side-by-side comparison of trust vs. probate process.

• How Long Does Probate Take in California? - 12-18 month timeline you'll avoid with proper planning.

Get Help Determining If Probate Is Required

Whether you're trying to determine if a deceased family member's assets require probate, or you want to ensure your own assets avoid probate, experienced legal guidance provides clarity and peace of mind.

Call (818) 291-6217 to schedule a consultation at my Glendale office, or complete our probate questionnaire for current probate matters or estate planning questionnaire for probate avoidance planning.

As a California probate and estate planning attorney serving Los Angeles County, I help families determine which assets require probate, guide them through the probate process when necessary, and create comprehensive estate plans that keep assets out of probate entirely.

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About the Author

Rozsa Gyene (State Bar No. 208356) is a California estate planning and probate attorney serving Glendale, Burbank, Pasadena, and throughout Los Angeles County. With extensive experience in both probate administration and estate planning to avoid probate, Rozsa helps clients understand California's complex probate rules and create plans that actually protect their families from the probate process.

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Disclaimer: This article provides general information about California probate and should not be construed as legal advice. Every situation is unique. Laws, thresholds, and procedures change regularly, and this article reflects California law as of January 2025. Consult with a qualified California probate attorney about your specific circumstances.