In fact, one of the most effectives strategies for avoiding probate is to convert as many estate assets as possible into non-probate assets. As the name implies, assets that are considered “non-probate” assets bypass the probate process altogether and can be distributed immediately to the intended beneficiary. Along with trust assets, common examples of non-probate assets include:
- Certain types of jointly held property (usually when held with “rights of survivorship”)
- Proceeds of a life insurance policy
- Retirement accounts
- Accounts designated as “payable on death (POD)” or “transfer on death (TOD)”
