Non-probate transfers Flashcards
probate
court process for approving distribution of a decedent’s property in accordance with decedent’s last will and testament, intestacy laws, and spouse protection rules
inter-vivos trust
non-probate transfer. grantor may be trustee and sole beneficiary during life, with remainder beneficiaries as owners on grantor’s death
joint tenancy in real property
joint tenants with rights of survivorship - right passes immediately upon death to person holding right of survivorshp
life insurance
pay premiums during life with payout to named beneficiary on death
payable on death designatons
banks, brokerage companies, managers of retirement accounts ask you to identify a payable on death or transfer on death beneficiary
non-probate transferee predeceases decedent
named beneficiary dies before account or policy holder makes the non-probate transfer ineffective. interests of the joint tenant vanish upon death. class gifts are redistributed
effect of divorce on non-probate transfer
divorce presumptively severs joint tenancies and revokes beneficiary designations and trust provisions
disclaimer of non-probate transfer
written, signed, delivered disclaimer of a non-probate transfer makes transfer ineffective. you are treated as pre-deceased
slayer statute
a person convicted of murder or voluntary manslaughter, or shown by preponderance of the evidence in a civil proceeding to have committed either offense cannot profit off of killing the beneficiary, so the transfer is ineffective
spouse protections and non-probate transfers
non-probate transfers can be rendered ineffective if necessary to fulfill spouse protections
effect of debts on non-probate transfers
creditors and the IRS can go after non-probate transfers if they cannot fully collect on the estate
