One of the kindest things you can do for your family is to make settling your estate simple. In Manhattan, where so much wealth sits in co-ops, retirement accounts, and brokerage holdings, knowing which assets pass through probate and which transfer automatically can save your loved ones months of waiting and worry. Here is a plain-language map.
What Probate Actually Is
Probate is the court process, governed by the Surrogate’s Court Procedure Act (SCPA), in which a will is proven valid and an executor is authorized to gather assets, pay debts, and distribute what remains. For a Manhattan resident, this takes place in the New York County Surrogate’s Court. If there is no will, a similar administration proceeding applies and assets pass under the intestacy rules of EPTL Article 4.
Assets That Usually Go Through Probate
- Property owned in the deceased’s name alone, such as a brokerage account or a co-op held solely by one person.
- Real estate titled only in the decedent’s name.
- Personal belongings, art, and collections.
- A business interest with no transfer plan in place.
These pass under the will, which must meet the execution requirements of EPTL §3-2.1, or under intestacy if there is no valid will.
Assets That Usually Skip Probate
- Jointly owned property with right of survivorship, common for married couples sharing a Manhattan apartment.
- Beneficiary-designated accounts: life insurance, IRAs, 401(k)s, and payable-on-death or transfer-on-death accounts.
- Assets in a revocable living trust under EPTL Article 7. Note that a revocable trust avoids probate but offers no estate-tax savings, since the assets are still yours during life.
- Certain irrevocable trust assets, often used for estate-tax planning or Medicaid eligibility, subject to the five-year look-back. A supplemental needs trust under EPTL §7-1.12 can protect a disabled beneficiary.
Why This Matters for Manhattan Estate Taxes
Avoiding probate is about ease and privacy, not taxes. New York’s estate tax is separate. For 2026 the New York exclusion is $7,350,000, but a steep cliff applies: an estate exceeding $7,717,500 can lose the exclusion entirely and be taxed on the full value. Because many Manhattan estates with valuable real estate approach these numbers, planning the right mix of trusts and beneficiary designations matters.
Planning for a Smoother Transition
The goal is balance. Naming beneficiaries and using trusts can spare your family the wait of probate, while a properly drafted will under EPTL §3-2.1 catches anything left over. A durable power of attorney under General Obligations Law §5-1513 and a health care proxy under Public Health Law Article 29-C round out a plan that protects you during life, too.
A Reassuring Takeaway
You don’t need to memorize these categories. You simply need a plan that fits your family. When your assets are organized thoughtfully, your loved ones in Manhattan inherit clarity along with everything else.
Consult a New York attorney. The right balance between probate and non-probate transfers depends on your assets, your family, and New York’s tax rules. A New York estate attorney can build a plan and explain how the New York County Surrogate’s Court would handle your estate. This article is general information, not legal advice.