Attorney
What actually happens to someone’s property after they pass away? It’s a question many people face while grieving or thinking ahead. California law sets out a clear process for transferring assets like bank accounts, homes, and personal belongings, but the process can vary depending on how things are titled or whether there’s an estate plan in place.
At Horizon Elder Law & Estate Planning, Inc., we can help you understand how these different types of assets are handled after death and how proper planning can give you peace of mind.
Bank Accounts: What Happens and Who Can Access the Funds?
Not all bank accounts are treated the same after someone dies. The way the account is set up will determine what happens next.
- Joint accounts: These typically go directly to the surviving account holder.
- Payable-on-death (POD) accounts: The funds go to the person listed as the beneficiary.
- Sole accounts with no beneficiary: These usually become part of the estate and may need to go through probate.
In California, if the total estate is under a specific dollar amount (adjusted annually), a simplified small estate process may apply. This allows heirs to use a sworn affidavit to claim assets, such as bank funds, without the need for formal probate.
Keep in mind that banks often freeze sole accounts once they learn of a person’s passing. This can delay access unless someone has legal authority, such as the personal representative (also referred to as executor) of a will or a court-appointed administrator.
Planning ahead by naming beneficiaries or creating a trust can help loved ones avoid delays and reduce stress during an already difficult time.
Real Estate: What Happens to the Home?
If your loved one owned a home, what happens next depends on how it was titled.
- Joint tenancy or community property with right of survivorship: The home generally passes automatically to the surviving co-owner.
- Transfer-on-death (TOD) deed: This allows the property to transfer to a named beneficiary without probate.
- Individually owned property: If the home isn’t in a trust or doesn’t have a TOD deed, it likely goes through probate.
For married couples, California’s community property rules may also come into play. The surviving spouse may already own half the home and may be entitled to the other half under the will or state law.
Placing a home into a revocable living trust is one way to help keep it out of probate. That means faster access for heirs, fewer court fees, and a more private process overall.
Personal Property: What About Furniture, Jewelry, and Sentimental Items?
Items like clothing, household goods, collectibles, and family heirlooms often hold sentimental value, even if they aren’t worth much in dollars. But personal property can still cause conflict if there’s no clear direction.
If the decedent had a will, it might include instructions on who gets what. If there’s a trust, personal property can be listed and distributed through that document. If no plan exists, the estate’s representative decides how to divide everything, sometimes with court approval.
To help prevent family disputes, we often recommend:
- Making a written list of important items and who should receive them
- Talking with loved ones ahead of time about special belongings
- Choosing a responsible person to oversee the distribution
These small steps can go a long way in protecting relationships and honoring your wishes.
How We Can Help You Make the Process Smoother
Whether you’re planning ahead or dealing with a recent loss, we’re here to guide you. At Horizon Elder Law & Estate Planning, we help families understand how their assets will be handled and make sure those wishes are respected.
If you’re creating a plan, we’ll help you:
- Decide the best way to hold title to your home
- Set up beneficiary designations for accounts
- Create a will or trust that clearly lays out your intentions
- Ensure personal items go to the people you care about
If a loved one has passed away, we can walk you through the steps needed to settle their estate with as little stress as possible.
Take Control of What Happens Next
You can’t predict the future, but you can plan for it. By taking the time to prepare, you can make things much easier for the people you care about.
Contact Horizon Elder Law & Estate Planning today to schedule a consultation. We’ll help you put the right plan in place so your home, accounts, and personal belongings are handled the way you want.