Which types of property are generally included in the probate estate?

The correct answer identifies stocks that are solely owned by an individual as being part of the probate estate. When a person passes away, their probate estate consists of assets that are solely owned and do not have designated beneficiaries or are not otherwise excluded from probate. These assets, including individually held stocks, require probate administration for distribution according to the deceased’s will or the laws of intestacy if no will exists.

In contrast, property held in a trust is not generally part of the probate estate because it is owned by the trust itself, and the trust terms dictate how these assets are to be distributed upon the grantor’s death. Similarly, retirement accounts like IRAs and 401(k)s typically have designated beneficiaries and pass directly to that beneficiary without going through probate. Life insurance policies also operate under the same principle, where the benefits are paid directly to the named beneficiary, thereby avoiding probate as well. Understanding these distinctions is crucial for effective estate planning, as they influence how assets are managed and transferred after an individual's passing.