Do you know the difference between these terms?
Estate Planning has lots of different terminologies. Protecting your property from probate is one of the main concerns for most clients. Therefore, it is essential to know what this includes regarding assets designated between probate and non-probate rules and definitions.
Non Probate Property consists of assets that will transfer automatically at death to a new owner by operation of law because of the way they are titled or under a beneficiary designation.
Non Probate assets:
1. Life insurance policies with designated beneficiaries pass without the necessity of going through probate court.
2. Revocable living trusts or irrevocable tests created during your life pass without the necessity of going through probate court.
3. Living trust- non-probate asset
Probate Property consists of the assets in the Decedent’s name as of death and does not transfer upon death without the appointment of a Personal Representative. The distribution of probate assets will be either pursuant to the Will or the laws of intestacy. Intestacy is the state of dying without a will.
Probate assets:
1. Business assets, without an operating agreement with specific terms regarding death.
2. Accounts with no beneficiary designated or if the beneficiary is deceased.
3. Accounts with a minor or disabled beneficiary.
Most family estate plans are personal and unique to their desired requests. Therefore, if you want to protect your family from probate, take the time now to set up a time with an attorney that specializes in estate planning, like me, to make sure that your wishes are met.
Contact me for more information.
