I often meet with families after a loved one has passed, and they come to my office with a shoebox of documents—a will, a few old bank statements, the deed to a house. One of the first questions they ask is, “Do we have to go through probate for this?” They’ve heard stories about the time and expense of Surrogate’s Court and want to know if they can avoid it. The answer surprises them. It’s not about the total net worth of the person who died, but about the value of the assets that must pass through their will.
A person could have a multi-million dollar estate that completely bypasses probate, while someone with a modest checking account and a car in their name alone might require a court proceeding. The key is understanding which assets are considered part of the “probate estate.”
The $50,000 Question in New York
The question is not “how much is the estate worth?” The real question is, “what is the value of the assets titled solely in the decedent’s name, with no designated beneficiary?” These are the assets the will controls and, consequently, that the Surrogate’s Court must oversee.
New York law provides a simplified process for smaller estates, known as “Voluntary Administration.” Under Surrogate’s Court Procedure Act (SCPA) Article 13, if the total value of personal property in the probate estate is $50,000 or less, the family can use this faster, less formal procedure. This threshold was increased from $30,000 in 2019.
This $50,000 figure includes bank accounts, stocks, and tangible items like cars or jewelry held only in the decedent’s name. This simplified process does not apply to real estate. Any transfer of a house or co-op in Brooklyn, for instance, owned solely by the decedent will require a full probate proceeding, regardless of its value.
Assets That Don’t Count Toward the Probate Threshold
Many significant assets are not part of the probate estate at all. These pass directly to a named person by operation of law or contract, rendering the will—and the court—irrelevant for their transfer. This is the heart of prudent estate planning.
Here are the most common examples:
- Assets Held in a Trust: Property titled in the name of a revocable or irrevocable trust is controlled by the trustee, not the will. This is the single most effective tool for avoiding probate.
- Jointly Owned Property: A bank account or real estate held as “joint tenants with rights of survivorship” (JTWROS) automatically passes to the surviving owner.
- Retirement Accounts: An IRA, 401(k), or 403(b) with a designated beneficiary goes directly to that person. The will has no power over it.
- Life Insurance Policies: The death benefit is paid directly to the named beneficiaries on the policy.
- Payable-on-Death (POD) or Transfer-on-Death (TOD) Accounts: Bank and brokerage accounts can be set up to transfer automatically to a named individual upon death.
I have worked with clients whose total assets were well into seven figures, but their probate estate was zero. They were deliberate. They did the work ahead of time to ensure every significant asset was held in a trust or had a designated beneficiary. Their families were able to settle their affairs privately and efficiently, without court intervention.
Probate is a Matter of Title, Not Value
Probate is a process for re-titling assets that have no other legal mechanism for transfer. It is the court stepping in to provide the legal authority—through a document called Letters Testamentary—for an executor to act on behalf of the estate.
If you have been intentional about how your assets are owned, you can significantly limit the court’s involvement. This isn’t about avoiding taxes or hiding wealth; it is about stewardship. It’s about creating a clear, private, and efficient transition of your legacy to the next generation. It spares your family the public nature of a court process during an already difficult time.
The goal is to leave behind a clear set of instructions and a structure that functions without needing a judge’s approval. That is what a well-considered estate plan accomplishes.
A good first step is to create an inventory of your major assets—your home, bank accounts, investments, and retirement funds. Beside each one, write down how it is titled and whether a beneficiary is named. That exercise will give you a clear picture of what your family would face. My firm offers a preliminary asset and beneficiary review to identify which of your holdings would be subject to Surrogate’s Court jurisdiction.
