Also known as: probate property · nonprobate property · non-probate property · probate assets · nonprobate assets
Written by attorneys · grounded in primary & secondary sources — see below
Assets owned by a decedent at death that are subject to administration under state laws governing decedents' estates. Nonprobate property consists of assets that pass directly to designated beneficiaries by operation of law or contract outside estate administration, such as joint tenancies with right of survivorship and payable-on-death designations.
Paul Peterson and his wife held their home as tenants by the entirety. While divorce proceedings were pending, Paul executed a will attempting to leave his interest in the home to his sister Phoebe Park. Paul died before any divorce decree was entered and before the tenancy was severed. Title to the home passed directly to his wife by operation of law rather than through probate under the will.
Pablo Perez created a revocable trust during his lifetime to hold interests in several business ventures. He executed a will directing additional LLC membership interests into the trust upon his death. After Pablo died the trust assets transferred directly to the named beneficiaries without entering probate administration.
Select any source to read its text and confirm it supports the definition.
Portia Price named her spouse as the beneficiary on a life insurance policy and retirement account. After the couple divorced, Portia died without changing the designations. The proceeds passed directly to the former spouse outside probate because the beneficiary designations remained effective under governing law.
Probate property consists of assets owned by the decedent at death that require administration under state decedents' estates laws. Nonprobate property passes directly to beneficiaries by operation of law or contract, such as through joint tenancy with right of survivorship or payable-on-death designations, without entering estate administration.
Supporting sources
A will cannot dispose of nonprobate property held as tenants by the entirety or in joint tenancy with right of survivorship. If the decedent dies while the tenancy remains intact, title passes by operation of law to the surviving joint tenant rather than through the will.
Supporting sources
Some state statutes include specified nonprobate assets in the augmented estate for purposes of calculating the elective share. The elective-share fraction is then applied to the combined value of the probate estate and the designated nonprobate assets.
Supporting sources
Will substitutes such as revocable trusts, life insurance, pension accounts, and payable-on-death arrangements serve the function of a will but transfer property outside probate. They need not comply with will formalities because the transfer occurs by contract or operation of law at death.
Supporting sources