What does it mean when an attorney informs you that something is probate property? When someone 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.
Just put, probate property is the property of the decedent that transfers by means of intestate succession– due to the fact that the decedent passed away without having a valid will– or it is created through the decedent’s will. Examples of probate property include such things as furnishings, family treasures, works of art or literature, and other types of personal property one gets throughout his or her life.
These days, nevertheless, a lot of transfers of property include the transfer of non-probate property. It includes real or personal property that is held in joint tenancy, such as bank accounts, shared funds, and parcels of real estate; life insurance proceeds from a policy taken out on the decedent’s life; contracts that consist of pay-on-death provisions, such as pension plans, tax-deferred investment strategies; and, some interests in trusts.
Knowing what types of property you have plays a huge role in developing a correct estate plan for your liked ones.