What are non probate assets?
Non probate assets are typically property (real estate or personal property) that are owned where a contractual arrangement has been created typically with a financial institution whereby the financial institution agrees on the death of the owner to automatically transfer title to a designated beneficiary or joint owner. One common example of non probate property is jointly owned real estate and personal property which by statute will automatically belong to the surviving joint tenant(s) at death in proportion to their ownership. Other examples of non probate assets are Payable on Death (“POD”) bank accounts, Transfer on Death (“TOD”) security registration, life insurance and annuity contracts wherein the owner of the policy designates a beneficiary to receive the policy if it has not been consumed prior to death; Individual Retirement Accounts (“IRAs”) and retirement plans where the owner designates a beneficiary, some employment benefits, certain union death benefits, POD Government
