Non-Probate Assets

Question 1

Define probate estate.

Answer 1

Property a testator owned solely in his name at the time of death (which is disposed of pursuant to the terms of a will - or passes by intestacy).

Question 2

What are non-probate assets?

Answer 2

Interests in property that are not subject to disposition under the will or via intestacy. The will is ineffective when it comes to non-probate property.

Question 3

Property that passes by operation of law: contract, insurance, trust accounts are all examples of…?

Answer 3

Non-probate assets.

Question 4

If there is a conflict between the will and the non-probate asset’s terms - who wins?

Answer 4

The terms of a non-probate asset trump the terms in a will.

Question 5

What kind of asset is property passing by the right of survivorship?

Answer 5

Property that passes by the right of survivorship is a non-probate asset.

Question 6

What kind of asset is property passing by contract?

Answer 6

Property passing by contract is a non-probate asset.

Question 7

When a testator’s life insurance policy is made payable to his estate or to his executor, what kind of assets are the proceeds?

Answer 7

They become probate assets.

Question 8

When a testator’s life insurance policy is made payable to a third party (whether relative or friend), what kind of asset is that?

Answer 8

A non-probate asset.

Question 9

What kind of asset is property held in trust?

Answer 9

Property held in trust is a non-probate asset.

Question 10

What kind of asset is property over which the decedent held power of appointment?

Answer 10

Property over which the decedent held power of appointment is a non-probate asset.