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What does it mean to say that the ownership of non-probate property transfers at the moment of death under the terms of a contract?

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What does it mean to say that the ownership of non-probate property transfers at the moment of death under the terms of a contract?

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A. When you own non-probate property that changes ownership at the moment of death under the terms of a contract, the contract that you have signed designates another person to be your beneficiary.

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