Not everything a person owns goes through probate. Understanding the difference affects your inheritance timeline and options.
When someone dies, some of their assets must go through probate to be distributed to heirs, while others pass directly to beneficiaries outside of probate. The distinction is important because non-probate assets transfer quickly (often within weeks), while probate assets can be tied up for months or years. Understanding which category your expected inheritance falls into helps you plan accordingly.
Probate assets are those owned solely by the deceased person with no designated beneficiary or automatic transfer mechanism. Common examples include individually owned real estate (homes, land, rental properties in the deceased's name alone), personal bank accounts without a POD designation, vehicles titled only in the deceased's name, personal property (furniture, jewelry, art, collectibles), business interests, and investments held in individual accounts without a TOD designation.
Non-probate assets transfer automatically upon death through some legal mechanism other than a will. These include life insurance proceeds (paid directly to named beneficiaries), retirement accounts like 401(k)s and IRAs with beneficiary designations, bank accounts with payable-on-death designations, jointly owned property with right of survivorship, assets held in a living trust, and transfer-on-death securities and real estate deeds.
Some situations aren't clear-cut. If a beneficiary designation is outdated (naming a deceased ex-spouse, for example), the asset may need to go through probate. If a trust was created but assets were never retitled into it ("unfunded trust"), those assets go through probate despite the trust's existence. And if all named beneficiaries predecease the account holder with no contingent beneficiaries, the asset typically becomes a probate asset.
If you're the beneficiary of non-probate assets like life insurance or a retirement account, you can typically access those funds relatively quickly — often within a few weeks of providing a death certificate and claim form. If your inheritance comes from probate assets, you'll need to wait for the probate process to complete. An inheritance advance can bridge the gap during that wait.
Disclaimer: This page is for general informational purposes only and does not constitute legal, financial, or tax advice. Probate laws, timelines, and costs vary significantly by state and by individual circumstances. We strongly encourage you to consult with a qualified attorney or financial advisor for guidance specific to your situation. First Heritage Funding is not a law firm and does not provide legal services.
No. Non-probate assets pass according to their own designation — beneficiary forms, joint ownership documents, or trust terms — regardless of what the will says. A will only controls probate assets. This is why keeping beneficiary designations up to date is so important.
Not necessarily. A house held in joint tenancy with right of survivorship passes automatically to the surviving owner. A house in a living trust passes according to the trust terms. A house with a transfer-on-death deed passes to the named beneficiary. Only a house titled solely in the deceased's name (without these mechanisms) is a probate asset.
Generally, non-probate assets are not available to satisfy the deceased's debts — they pass directly to beneficiaries. However, there are exceptions. Some states allow creditors to reach certain non-probate transfers if the probate estate is insufficient to pay debts. Life insurance proceeds may be subject to claims if the estate is the named beneficiary.
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