Probate

Non-Probate Assets

There are some assets that are exempt from probate court. Learn here what these assets are and how to keep your other assets out of probate.

Not all of a person's property will have to go through probate, and these items are termed non-probate assets. There are a variety of items that are considered non-probate assets, including many personal effects.

The types of property that are non-probate assets will vary from state to state. In some states, there are certain assets that don’t have to pass through probate in order to reach the heir’s hands, but there is usually some legal process that must take place to be able to change the title from the decedent’s name to the beneficiary’s. Sometimes this just requires filling out forms, or it may require a simplified probate procedure.

Other non-probate assets can skip the whole process. This includes assets that are payable directly to the beneficiary, such as life insurance, IRA’s, 401(k)’s, and other such accounts. Any POD (payable on death) accounts usually are considered non-probate assets, as well. This means that if you titled your car or your savings account with “Your Name POD Your Spouse’s Name,” when you die, this will automatically be transferred to your spouse without the hassle of probate court. In some states, this is called TOD (time of death).

You can make nearly all of your assets non-probate assets by funding them into a living trust. This way, any assets listed within the trust are not in your name, therefore they do now have to go through probate.