The following are types of non-probate transfers:
Passing property to beneficiaries through a living trust;
Leaving funds to a beneficiary named on a pay on death account or transfer on death account;
Leaving funds to a beneficiary named on a life insurance policy;
Leaving funds to a beneficiary named on an IRA, 401k or other retirement account; and
Holding title to property as joint tenants or tenancy by the entirety.
Please note: Using life insurance, pay-on-death accounts, and retirement accounts to pass your estate to beneficiaries outside of probate only works if you: a. complete all required forms to name a beneficiary on each policy or account; and b. name a beneficiary other than your estate. Of course, if you name your estate as the beneficiary of these accounts or policies, the property will pass through probate.
8 Ways to Avoid Probate by attorney Mary Randolph guides you through the process of estate planning methods to avoid probate on many different types of assets. Detailed instructions are provided on non-probate transfers such as gifting, beneficiary designations, living trusts, community property, joint tenancy, and other property title changes. Tax concerns are also addressed.
