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MIAMI A
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Simple English definitions for legal terms
nonprobate transfer
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A quick definition of nonprobate transfer:
A nonprobate transfer is when someone's property is given to another person after they die without having to go through a court process called probate. This can happen in many ways, like if the person had a living trust, or if they owned something with someone else and that other person automatically gets it when they die. Nonprobate transfers are good because the property can be given right away, it's private, and it's usually cheaper than going through probate.
A more thorough explanation:
A nonprobate transfer is when property is transferred from a deceased person to another person without going through a probate court. This can be done in several ways:
- Living trusts
- Marital property agreements
- Survivorship marital property
- Joint ownership with right of survivorship
- Payable on death (POD) accounts
- Beneficiary designations on retirement plans, annuities, and life insurance policies
- Transfer on death (TOD) security registration
Nonprobate transfers have several benefits. First, the property is available immediately because it does not have to go through the probate process. Second, nonprobate transfers are private because they do not involve public proceedings. Finally, nonprobate transfers are less expensive because there are no court costs or attorney fees.
For example, if a person creates a living trust and transfers their property into the trust, the property will pass to the beneficiaries named in the trust without going through probate. Similarly, if a person designates a beneficiary on their life insurance policy, the proceeds will go directly to the beneficiary without going through probate.