Which Assets Go Through Probate in NYC (and Which Don’t)

One of the biggest misconceptions among New York City families is that everything a person owns must pass through Surrogate’s Court. In reality, a large share of the typical NYC estate, from a co-op to a retirement account, may move directly to heirs without probate at all. Sorting assets into the right bucket early saves months. Use this checklist to map an estate before you ever file in Manhattan, Queens, or Kings County Surrogate’s Court.

What Probate Actually Covers

Probate governs assets owned in the decedent’s name alone, with no surviving co-owner and no named beneficiary. If there is a valid will, the Surrogate’s Court admits it under EPTL 3-2.1 and appoints an executor. If there is no will, the estate passes by intestacy under EPTL Article 4, and the court appoints an administrator. Either way, only the solely owned assets flow through this process.

Assets That Typically Go Through Probate

• A house, condo, or co-op apartment titled in the decedent’s name alone.
• Individual bank or brokerage accounts with no beneficiary designation.
• Personal property, vehicles, and business interests held individually.
• Any account where the named beneficiary has died and no contingent was listed.

Assets That Usually Skip Probate

• Joint accounts and property with right of survivorship. A jointly held NYC apartment passes automatically to the surviving owner.
• Beneficiary-designated accounts. Life insurance, IRAs, and 401(k)s pass to the named beneficiary directly.
• Payable-on-death and transfer-on-death accounts. These bypass the court by contract.
• Assets in a revocable living trust. Under EPTL Article 7, property titled in a funded revocable trust passes per the trust terms, avoiding probate.

A Common Trap: The Unfunded Trust

Many New Yorkers sign a revocable trust but never retitle their apartment or accounts into it. An empty trust avoids nothing. The asset stays in the decedent’s name and still goes through Surrogate’s Court. Funding is the step that actually delivers probate avoidance.

Remember: Avoiding Probate Is Not Avoiding Tax

A revocable trust keeps assets out of court, but it does not reduce estate tax. For 2026 the New York estate tax exclusion is $7,350,000, with a cliff at $7,717,500, above which the entire estate becomes taxable. Tax planning generally uses irrevocable trusts, which carry their own tradeoffs, including the five-year Medicaid look-back for transfers intended to protect assets from nursing-home costs.

Your Sorting Checklist

1. List every asset and how it is titled.
2. Check each for a surviving joint owner or named beneficiary.
3. Confirm whether any trust is actually funded.
4. Separate probate assets from non-probate assets.
5. Total the gross estate to assess the NY estate tax threshold.

A Note for New York Families

Titling drives everything, and small mistakes ripple into long Surrogate’s Court delays. A New York attorney can review how each asset is held and confirm what truly needs probate. This article is general information, not legal advice for your circumstances.