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When it comes to estate planning in Arizona, understanding which assets do not pass under a will is crucial. Certain types of property bypass the probate process, impacting how they are distributed after someone passes away. In this article, we will delve into the various forms of property that do not pass under a will in Arizona, including joint property, life insurance policies, and trusts exempt from probate.
Joint Property
One common type of property that does not pass under a will in Arizona is joint property. When property is held jointly with rights of survivorship, it automatically passes to the surviving joint owner upon the death of the other owner. This means that the property does not form part of the deceased individual’s estate and is not subject to probate.
Life Insurance Policies
Life insurance policies are another asset that typically bypasses a will in Arizona. The proceeds from a life insurance policy are paid directly to the named beneficiaries and are not considered part of the deceased’s probate estate. This allows for a swift and efficient transfer of funds to the designated beneficiaries.
Trusts Exempt from Probate
Assets held in a trust are also exempt from probate in Arizona. A trust is a legal entity that holds assets on behalf of a beneficiary. When assets are placed in a trust, they are no longer considered part of the probate estate and can be distributed according to the terms of the trust document. This can help avoid the time and expense of the probate process.
Legal Code Reference
It is important to note that the laws governing probate and estate planning in Arizona can be found in the Arizona Revised Statutes, Title 14 (Trusts, Estates, and Protective Proceedings). Specifically, Title 14, Chapter 2 deals with the probate of wills and administration of estates, outlining the rules and procedures for handling assets that pass under a will.
Final Considerations on Property Passing Under a Will
Understanding which types of property do not pass under a will in Arizona is essential for effective estate planning. By being aware of assets such as joint property, life insurance policies, and trusts exempt from probate, individuals can ensure that their assets are distributed according to their wishes in a timely and efficient manner.
Buried in Work’s Additional Resources
Buried in Work provides Arizona state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
