Probate vs. Non-Probate Assets

There is much confusion about the Probate Court process, including how much it costs, the time it involves, and whether to avoid it. A basic understanding of probate and non-probate assets can help shed light on these issues. For more information, also see Dispelling the Probate Court Myths and How to Avoid Probate Court.

Probate Assets

Probate assets are those assets held in the decedent's individual name, with no beneficiary designation, and not held as joint tenants with rights of survivorship.

Examples of probate assets held in the decedent’s individual name include:

• Real Estate
• Stock
• Bank Accounts
• An Automobile

Probate assets are transferred through Probate Court according to the decedent's Will, and if there is no Will, according to state statute.

Non-Probate Assets

Non-probate assets have beneficiary designations or are held as joint tenants with rights of survivorship. 

Examples of non-probate assets include:

• Life Insurance
• Company Pension Plans
• 401(k)s, IRAs, TSAs
• Annuities
• Pay-On-Death (POD) Accounts
• Transfer-On-Death (TOD) Assets

These assets will pass directly to the named beneficiaries. Assets held as joint tenants with rights of survivorship will pass directly to the surviving joint tenant. Non-probate assets are transferred by use of a death certificate and sometimes an affidavit.