What happens to a person’s assets when they die depends on how a particular asset is titled. Any assets titled in the decedent’s sole name and without a named beneficiary—pass through the probate or administration process in Surrogate’s Court.
Certain types of assets are “non-probate assets” that bypass probate or administration and pass directly to beneficiaries. These include:
• Property in which you own title as “joint tenants with right of survivorship” or as “tenants by the entirety” if married. Such property passes to the co-owners by operation of law and does not go through probate or administration.
• Retirement accounts such as IRA and 401(k) accounts where there are designated beneficiaries.
• Life insurance policies where there are designated beneficiaries.
• Bank accounts with “pay on death” (POD) designations or “in trust for” (ITF) or “transfer on death” (TOD) designations.
• Property owned by a living trust. Legal title to such property passes to successor trustees without having to go through probate.