Non-Probate Assets

Question 1

Def: Probate Estate

Answer 1

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

Question 2

Def: Non-Probate Assets

Answer 2

Interests in property that are not subject to disposition under the will or via intestacy.

NOTE: will is ineffective w/ respect to non-probate property

Question 3

4 Categories of Non-Probate Assets

Answer 3

1- PROPERTY PASSING BY RIGHT OF SURVIVORSHIP
- ex: joint bank account, joint stock account, or payable on death securities

2- PROPERTY PASSING BY CONTRACT

• ex: life insurance policy or employee benefits payable to a beneficiary OTHER than the decedent or decedent’s estate
• note: if the insurance or benefits proceeds are paid to the testator’s executory or estate, the proceeds become probate assets

3- PROPERTY HELD IN TRUST
- note: the terms of the trust will govern the disposition of the trust assets

4- PROPERTY OVER WHICH THE DECEDENT HELD A POWER OF APPOINTMENT