What does it mean when an attorney informs you that something is probate property? What about non-probate property? If you don’t understand, then you should keep reading. When somebody dies, he or she is called a decedent, and the property that they owned will be classified as being either probate property or non-probate property.
Put simply, probate property is the property of the decedent that transfers through intestate succession– due to the fact that the decedent died without having a legitimate will– or it is developed through the decedent’s will. Examples of probate property consist of such things as furniture, family heirlooms, masterpieces or literature, and other types of personal effects one acquires throughout his or her life.
These days, however, a lot of transfers of property involve the transfer of non-probate property. When something is non-probate property, it suggests that it bypasses the process of probate and title to the property passes straight to the next owner or the recipient. What property counts as non-probate property is vast. It consists of real or personal effects that is held in joint occupancy, such as bank accounts, mutual funds, and parcels of property; life insurance coverage proceeds from a policy secured on the decedent’s life; contracts which contain pay-on-death arrangements, such as pension, tax-deferred financial investment strategies; and, some interests in trusts.
Knowing what kinds of property you possess plays a substantial function in establishing an appropriate estate plan for your loved ones. If you are not sure what type of property you have, call a qualified estate planning attorney today.