When you die, your property will be distributed according to your wishes. However, how your property is distributed will depend on whether it is considered probate or non-probate assets.
Probate assets are assets that are not specifically designated to go to a specific person or entity in your will. These assets must go through the probate process, which is a court-supervised process for distributing your property. The probate process can be time-consuming and expensive, so it is important to plan ahead to minimize the amount of time and money your heirs have to spend.
Non-probate assets are assets that are specifically designated to go to a specific person or entity in your will. These assets do not have to go through the probate process, and they will be distributed to the designated person or entity immediately upon your death. Some common examples of non-probate assets include:
- Jointly owned property: If you own property jointly with another person, that property will pass to the surviving owner automatically upon your death.
- Life insurance: The beneficiary of your life insurance policy will receive the proceeds of the policy directly, without having to go through probate.
- Retirement accounts: The beneficiary of your retirement accounts will receive the proceeds of the accounts directly, without having to go through probate.
- Trusts: If you have assets in a trust, those assets will be distributed according to the terms of the trust, and they will not have to go through probate.
It is important to understand the difference between probate and non-probate assets so that you can make informed decisions about how to distribute your property after you die. If you have any questions about probate or non-probate assets, you should speak with an attorney.