What does it imply when a lawyer tells you that something is probate property? What about non-probate property? If you don’t know, then you ought to keep reading. When somebody passes away, 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.
Simply put, probate property is the property of the decedent that moves through intestate succession– because the decedent died without having a valid will– or it is created through the decedent’s will. Examples of probate property include such things as furniture, family heirlooms, works of art or literature, and other types of individual property one acquires during 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 occupancy, such as bank accounts, shared funds, and parcels of genuine estate; life insurance coverage continues from a policy taken out on the decedent’s life; contracts that contain pay-on-death arrangements, such as pension strategies, tax-deferred investment strategies; and, some interests in trusts.
Knowing what types of property you possess plays a huge role in developing a proper estate plan for your loved ones.