Probate and non-probate assets refer to two categories of property or assets that are handled differently in the estate planning and distribution process after someone passes away. The key difference lies in how these assets are transferred to heirs or beneficiaries. Probate Assets: Probate assets are assets that must go through the probate process upon the owner’s death. Probate is a legal procedure through which a court validates the deceased person’s will (if there is one) and oversees the distribution of their assets to beneficiaries. Some common examples of probate assets include real estate owned solely by the deceased and bank accounts in the deceased’s name alone. The probate process can be time-consuming, costly, and subject to public scrutiny. It typically involves court fees, attorney fees, and delays in distributing assets to heirs. Non-Probate Assets: Non-probate assets are assets that pass directly to designated beneficiaries without going through the probate process. These assets typically bypass the probate court, which can make the distribution process quicker and less expensive. Common examples of non-probate assets include: When two or more people own an asset jointly, the surviving co-owner automatically inherits the deceased co-owner’s share; Assets with named beneficiaries, such as life insurance policies, retirement accounts (e.g., 401(k)s and IRAs), and other payable-on-death (POD) or transfer-on-death (TOD) accounts. Upon the owner’s death, these assets pass directly to the named beneficiaries; Assets placed in a revocable living trust. Upon the owner’s death, the trust assets are distributed to beneficiaries according to the trust’s terms, bypassing probate. Gifts: Assets given as gifts before the owner’s death are not subject to probate, as they are no longer part of the owner’s estate. It’s important to note that the laws governing probate and non-probate assets can vary by jurisdiction, so it’s essential to consult with an attorney or estate planning professional to ensure your assets are appropriately structured to meet your wishes and minimize the impact of probate. Proper estate planning can help streamline the distribution of assets to your loved ones while minimizing costs and delays associated with probate.