Non-probate property refers to assets that are not subject to the probate process upon the owner's death. These assets pass directly to beneficiaries or co-owners outside of the probate proceedings.

 

Here are some common examples of non-probate property:

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 Jointly Owned Property: Assets held in joint tenancy with right of survivorship or tenancy by the entirety automatically pass to the surviving co-owner(s) upon the death of one owner. This commonly includes jointly owned real estate, bank accounts, and investment accounts.

 

Assets with Designated Beneficiaries: Certain assets allow you to designate beneficiaries to receive the property upon your death. Examples include life insurance policies, retirement accounts (such as IRAs and 401(k)s), payable-on-death (POD) bank accounts, and transfer-on-death (TOD) investment accounts. The named beneficiaries receive these assets directly, bypassing probate.

 

Trust Property: Assets held in a revocable living trust or an irrevocable trust typically avoid probate. When the trust creator (grantor) passes away, the assets are distributed according to the instructions outlined in the trust document. This provides privacy and can expedite the transfer of assets.

 

Gifts: Property that was gifted to others during the owner's lifetime is generally not subject to probate. Once the gift is complete, it belongs to the recipient, and it does not need to go through the probate process.

 

Property with Rights of Survivorship: Some property, such as real estate or bank accounts, may be held with rights of survivorship. This means that when one owner passes away, the surviving owner(s) automatically assume full ownership without probate involvement.