The Difference Between Probate and Non-Probate Property
Author: James A. Miller, Estate Planning Attorney / Category: Probate / Posted: 25 Aug 2010Like many people, you may believe your Will is the document that distributes every piece of your property, right down to the last dollar. This isn’t always the case however, as some assets are distributed according to other laws, regardless of what the Will might say.
A husband and wife for example, may own their home together. This joint ownership is called joint tenancy with the right of survivorship, and it overrides any bequest made in a Will. If the husband passes away and the wife is still living, she automatically inherits his interest in the home and this transfer happens regardless of whether there is a Will or not.
This type of property is known as non-probate property because it does not require probate to pass from one owner to another.
In addition, a Will cannot bequeath certain financial instruments such as life insurance policies, retirement plans and investment accounts. These assets include a named beneficiary as part of the account document. When you pass away, the funds or assets within the account will pass automatically to the beneficiary you designated for your account.
So what property does a Will cover? Probate property can include:
- Bank accounts;
- Personal effects;
- Cash gifts;
- Real estate that is not owned jointly; and
- Debts and taxes owed by the estate.
Since an individual’s entire estate is often addressed in various documents and governed by particular laws, it’s important to have a comprehensive estate plan that meets your needs and addresses all the unique aspects of your estate.
The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.
