When most people think of their “estate plan,” they think of their Wills. And it is true that a Last Will and Testament governs how your probate assets will be distributed upon your death. But what is a probate asset?
You might be surprised to learn that there may be significant assets that would pass outside your Will as “non-probate” assets. These can include assets that have beneficiary designations, as well as property held in joint names.
For many people, retirement assets (IRAs and 401(k)s, for example) make up a majority of their estates. However, these assets may be governed by a beneficiary designation selected many years ago, and may not reflect your current estate planning wishes. Life insurance will also pass to the beneficiary you have named.
Similarly, a home or other real property owned by joint tenants will not pass under a Will, but will pass by right of survivorship. A bank account may have a joint owner or a “transfer on death” designation that will cause it to pass outside your Will.
So when considering your estate plan, don’t forget to consider non-probate assets.
If you would like further information regarding estate planning, feel free to contact Vanarelli & Li, LLC.