One of the important aspects of developing an estate plan is using non-probate assets. Your Dunedin estate attorney can explain the key differences between probate and non-probate assets.
Probate Assets
For example, real property, bank accounts, CDs, stocks, bonds, brokerage accounts, vehicles, personal property, royalties from intellectual property, personal loans, an interest in a pending lawsuit and money are commonly probate assets. However, if there is a right of survivorship that is attached to the asset or if the asset is subject to a payable-on-death designation, the asset is usually not a probate asset. Additionally, many jurisdictions have a protected homestead law to prevent the decedent’s primary residence from being passed through the probate process. Furthermore, if any of these assets allowed the decedent to establish a beneficiary upon death, the asset is usually not subject to probate.
Non-Probate Assets
In contrast, your Dunedin lawyer can explain that non-probate assets are those that do not pass under the terms of a will or the laws of intestacy. Additionally, your Dunedin estate attorney may provide you with a list of typical non-probate assets. For example, life insurance is commonly a large portion of non-probate assets as long as the estate or the personal representative is not named as the beneficiary. Employer-provided retirement plans are common non-probate assets, assuming that the testator is not married. Likewise, funds that are part of a person’s Individual Retirement Account are usually non-probate assets. So are assets that are part of trusts and assets that pass with a right of survivorship, such as real property or a bank account.
Contact the Coleman Law Firm at 727-461-7474 for help with your estate plan.
