Nonprobate Assets are assets that (1) have a designated Beneficiary; (2) are held jointly with another person (“joint with right of survivorship" or “joint tenants"); or (3) are “payable on death" (“POD" designation) to another person.
Non-probate assets do not pass through the probate process, they pass directly to the designated Beneficiary upon the death of a Decedent. Coordination of probate and non-probate assets can be very complicated in the settlement of an Estate. Non-probate assets are subject to estate and death taxes.
This information was prepared as a public service by Mullavey, Prout, Grenley & Foe LLP. It contains general information and is not intended to apply to any specific situation. The information is very broadly and simply stated. There are a number of exceptions and specific rules that apply to your particular situation and lead to a different result. If you need legal advice or have questions, you should consult a lawyer.