Not all assets have to go through probate court when someone passes away. Assets that can transfer directly to beneficiaries outside of a Will are often called “non-probate assets” or part of a non-probate estate.
What Are Non-Probate Assets?
These are assets that pass automatically to someone else due to how they are titled or because a beneficiary is already named. Common examples include:
Assets held in a Revocable Living Trust
These are governed by the terms of the trust and avoid probate entirely.Jointly owned property with right of survivorship
When one owner passes away, the other automatically becomes the sole owner. This can apply to real estate, bank accounts, or vehicles.Accounts with named beneficiaries
Assets like life insurance, IRAs, 401(k)s, and some bank or investment accounts allow you to name a beneficiary. These accounts are distributed directly to the named person.Payable-on-Death (POD) or Transfer-on-Death (TOD) accounts
These designations allow certain bank or brokerage accounts to be passed to a named individual without probate.
What Is Probate, and Why Do People Avoid It?
Probate is a legal process used to validate a Will, settle debts, and distribute a person’s assets. It can be time-consuming, public, and costly, which is why many people choose estate planning tools—like a Living Trust—to avoid it where possible.
→ Related: What Is Probate?