Probate and Non-probate Assets

Coleman Law Firm

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

Your Dunedin estate attorney may tell you that probate assets are those that are typically subject to probate. They may include assets that are listed in the decedent’s will or that are those mentioned in the laws of intestacy if the decedent had no will or his or her will was declared invalid. Your Dunedin lawyer may further simplify this definition by saying that probate assets are usually those that are titled in the decedent’s name.

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.

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