How often have you heard the term “probate” estate or assets? Do you know what that term means? What about “non-probate” assets?
Upon your death, the assets of your estate are divided into two different categories; probate and non-probate assets.
Probate assets are typically those assets that are titled in your name alone that do not have beneficiary designations or some other transfer on death designations. Probate assets are also those assets in which you have a divisible interest, such as a joint tenancy – not joint with rights of survivorship.
The distribution of probate assets upon your death is governed either by your Will or Pennsylvania intestacy laws (watch for future blog posts about intestacy). When you die with a Will, you are said to have died testate (with a last will and testament) as your Will directs the distribution of your probate estate. If you die without a Will, you are said to have died intestate (without a last will and testament), in which case the intestacy laws will govern and dictate to whom your estate is to be distributed. Intestacy laws are the “default rules” that apply only if you never had a Will or do not have a valid Will or your Will does not effectively dispose of your probate estate.