How California Decides Which Assets Go Through Court (Probate) and Which Pass Directly to Survivors

Short answer: In California, assets that are owned solely in the decedent’s name with no valid beneficiary designation or transfer-on-death arrangement typically must go through court administration (probate). Assets that have a valid title or beneficiary arrangement that names a surviving owner or beneficiary usually pass directly to survivors outside probate (for example: joint tenancy, community property with right of survivorship, living trusts, payable‑on‑death accounts, life insurance, and retirement accounts with beneficiaries).

Detailed answer — what goes through probate and what doesn’t

This section explains, in plain language, the common categories of assets and how California law treats them. This is a general guide — individual situations vary, and county procedures differ.

Assets that typically must be administered in probate (court administration)

• Property titled solely in the decedent’s name with no beneficiary or co‑owner: Real property, bank accounts, vehicles, and other assets solely titled to the decedent and without a payable‑on‑death or transfer‑on‑death designation usually must go through probate so the court can transfer title to heirs or devisees named in a will.
• Personal property with no named beneficiary or joint owner: Household items, collectibles, and personal property that are not part of a trust and not otherwise designated will generally be distributed through probate.
• Estates that require appointment of a personal representative (executor/administrator): When there is a need for a court‑appointed person to collect assets, pay debts and taxes, and distribute remaining property according to a will or intestate succession, the probate court supervises that process.

Assets that generally pass outside probate (transfer automatically or by beneficiary designation)

• Assets held in a revocable living trust: Assets properly titled in the name of a living trust pass to the trust’s beneficiaries without probate, because title is held by the trustee (e.g., the decedent as trustee during life).
• Joint tenancy or community property with right of survivorship: Property owned jointly with rights of survivorship (including many joint bank accounts and joint real estate title) passes automatically to the surviving joint owner by operation of law.
• Accounts with payable‑on‑death (POD) or transfer‑on‑death (TOD) designations: Bank accounts, securities with TOD registration, and some vehicles or real property with a valid transfer‑on‑death deed pass directly to the named beneficiary without probate.
• Life insurance and annuities: Proceeds are paid to the named beneficiary under the policy, outside probate, unless the estate is the named beneficiary.
• Retirement accounts and employer plans (IRAs, 401(k), pensions): These pay to the beneficiary designated on plan forms. Beneficiary designations generally control over a will and avoid probate.
• Property that passes by operation of contract or statute: Examples include certain transfer‑on‑death deeds, survivorship agreements, and property governed by federal ERISA rules for employer retirement plans.

Important nuances and common exceptions

• Beneficiary designations control — keep them current: A properly completed beneficiary form on a retirement plan or life insurance policy typically controls who gets the money, even if a will says something different.
• Joint ownership only works if the joint title was properly set up: Merely sharing a bank card or being listed on a mailbox does not create a legal joint tenancy. Courts look at the title and the parties’ intent.
• Trust assets must be properly retitled: If the grantor created a living trust but left assets titled in their individual name, those assets may still be subject to probate unless retitled in the trust.
• Transfer‑on‑death (TOD) deeds and similar tools have formal requirements: California statutes allow certain transfer‑on‑death deeds for real property, but those deeds must meet statutory form and recording requirements to avoid probate.
• Creditors’ claims: Nonprobate transfers often avoid probate but may not avoid creditor claims in all cases. Creditors commonly have a limited time to make claims, and certain transfers made to defeat creditors may be reversed.
• Predeceased or invalid beneficiaries: If a named beneficiary died before the decedent or the beneficiary designation is invalid, the asset may end up going through probate unless there is a contingent beneficiary.

Small estates and simplified procedures

California offers simplified procedures for small estates so that not every modest estate requires full probate. Eligibility and available procedures depend on estate value and the type of assets. For more information on California’s probate and small estate procedures, see the California Probate Code and court self‑help resources listed below.

How to tell whether an asset will go through probate (quick checklist)

1. Find title documents and account statements. Who is listed as owner?
2. Look for beneficiary forms (life insurance, retirement, bank POD/TOD designations).
3. Check whether there is a living trust and whether the asset was retitled to the trust.
4. Confirm whether property is joint tenancy or community property with right of survivorship.
5. If unsure, consult a probate attorney — many offer a short intake to identify likely probate assets.

When you may need a California probate court

Probate court is typically required when:

• Significant assets are only in the decedent’s name and there is no valid nonprobate transfer;
• The estate must pay debts and a personal representative is needed to do so; or
• There are disputes among heirs or beneficiaries that require court resolution.

Probate can be time‑consuming and costly compared with passing assets by beneficiary designation or trust, which is why estate planning often focuses on retitling, beneficiary forms, and trusts to avoid probate where desired.

Where to read the law and find official guidance

• California Probate Code (text of the statutes): https://leginfo.legislature.ca.gov/faces/codes.xhtml?lawCode=PROBATE
• California Courts — probate and estate administration self‑help information: https://www.courts.ca.gov/selfhelp-probate.htm

Helpful Hints

• Start by collecting death certificate(s) and account/title paperwork — banks and insurers will require a death certificate to release funds or accept changes.
• Check beneficiary designations first — retirement accounts and life insurance usually pass outside probate.
• Look for a trust document — a living trust can avoid probate if assets were transferred into it.
• If the estate looks small or only personal property is involved, ask about California’s small estate affidavit/simplified procedures.
• Don’t assume joint accounts are safe — confirm how each account or property was actually titled.
• Update your own beneficiary designations and titles now to make things easier for survivors later.
• When in doubt, speak to a California probate attorney to determine whether probate is required and what the best strategy is for the family’s situation.

Disclaimer: This article is for general informational purposes only and is not legal advice. It does not create an attorney–client relationship. For advice about a specific situation in California, consult a licensed California attorney who handles probate and trust matters.