How Ohio’s Laws Address the Distribution of Intangible Assets in Probate

When dealing with the probate process in Ohio, the distribution of intangible assets poses unique challenges. Intangible assets can include items like bank accounts, stocks, bonds, patents, and even digital assets. Understanding how Ohio's laws address these assets during probate is crucial for executors, beneficiaries, and estate planners.

In Ohio, the probate process is governed by Title XXI of the Ohio Revised Code. The process is designed to ensure that a decedent’s debts are settled and their assets, including intangible assets, are distributed according to the will or state law if no will exists. Importantly, executors must identify all assets, tangible and intangible, to properly manage the estate.

According to Ohio law, intangible assets are included in the gross value of the estate. This means that they may be subject to debts and taxes before distribution. Executors must first settle any outstanding liabilities using the estate’s assets, including intangible ones, ensuring that creditors are paid before beneficiaries receive their inheritances.

One crucial aspect of managing intangible assets in Ohio probate is the requirement for proper documentation. For instance, for bank accounts, executors must present the death certificate and any necessary identification to access the accounts. If shares of stock are included, executors may need to work with the company’s transfer agent to transfer ownership to the beneficiaries outlined in the will.

Digital assets are becoming increasingly significant in modern estates. Under Ohio law, digital assets can include cryptocurrencies, social media accounts, and online banking. Ohio Revised Code Section 2137 grants fiduciaries the authority to manage digital assets, provided that the deceased has not expressly limited access to these assets through a service agreement. It’s essential for the deceased to have communicated their wishes regarding digital asset management to avoid complications during probate.

Another important consideration is the identification of intangible assets. Executors are encouraged to conduct an inventory of assets early in the process. This may involve examining financial records and consulting with professionals who can provide insights into the full scope of the estate’s holdings. Failure to account for intangible assets accurately can lead to legal disputes among beneficiaries or even potential claims by creditors.

Once all debts are settled and assets are identified, Ohio law mandates that the remaining assets be distributed according to the decedent’s will or, in the absence of a will, according to Ohio’s intestate succession laws. This distribution process must be executed fairly and transparently to mitigate any disputes among heirs.

In conclusion, addressing the distribution of intangible assets in Ohio probate requires a solid grasp of state laws and procedures. Executors must be diligent in asset identification, documentation, and compliance with legal requirements to ensure a smooth probate process. As Ohio’s laws around intangible assets continue to evolve, staying informed is key for those involved in estate planning and administration.