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Simple English definitions for legal terms
nonprobate asset
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A quick definition of nonprobate asset:
A nonprobate asset is something that a person owns and has value, but it doesn't have to go through a legal process called probate when the person dies. Probate is when a court decides how to distribute a person's things after they die. Nonprobate assets can include things like life insurance policies, retirement accounts, and property that is owned jointly with someone else. These things usually go directly to the person or people named as beneficiaries, without needing to go through probate.A more thorough explanation:
A nonprobate asset is an item that is owned and has value, but does not go through the probate process after the owner's death. This means that it does not have to be distributed through a will or trust. Examples of nonprobate assets include:
- Jointly owned property
- Life insurance policies with a named beneficiary
- Retirement accounts with a named beneficiary
- Payable-on-death bank accounts
These examples illustrate that nonprobate assets are those that have a designated beneficiary or joint owner, and therefore do not need to go through the probate process to be distributed.