Which assets are considered non-probate assets?

Non-probate assets refer to items that pass directly to beneficiaries without going through the probate process upon the decedent's death. Life insurance benefits and joint accounts fall into this category because they typically involve beneficiary designations or survivorship rights.

Life insurance policies allow the policyholder to name a beneficiary who will receive the proceeds upon the policyholder's death. This transfer happens directly and does not require probate court oversight. Joint accounts, particularly those held with rights of survivorship, also allow the surviving account holder to claim the account balances automatically without the need for probate.

In contrast, real estate held solely by the decedent would require probate to pass to the heirs or beneficiaries since there is no automatic transfer mechanism in place. Assets distributed according to a will involve probate because the will must be validated and administered by the court. Gifts made during the decedent's lifetime also do not qualify as non-probate assets; while they may bypass probate as transfers that occur before death, they are not categorized as assets that require no probate upon the decedent's death since they have already been transferred prior to death.

Thus, life insurance benefits and joint accounts are correctly identified as non-probate assets because their transfer upon death is streamlined and does not involve the court process.