When it comes to estate planning, understanding which assets pass under a will and which do not is crucial. In Alabama, there are specific types of property that bypass a will, ensuring they are distributed according to their designated beneficiaries. Knowing what property falls outside the scope of a will can help individuals make informed decisions when creating their estate plans.
Joint Property
One type of property that does not pass under a will in Alabama 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 owner’s estate and is not subject to distribution according to the terms of the will.
Legal Reference: Alabama Code Section 35-4-7
Life Insurance Policies
Proceeds from life insurance policies are another example of assets that do not pass under a will in Alabama. Life insurance policies typically designate a specific beneficiary to receive the proceeds upon the policyholder’s death. These proceeds are paid directly to the named beneficiary and are not considered part of the deceased individual’s estate for probate purposes.
Legal Reference: Alabama Code Section 27-14-34
Trusts
Assets held in a trust are also exempt from passing under a will in Alabama. A trust is a legal arrangement where a trustee holds and manages assets on behalf of a beneficiary. The terms of the trust dictate how the assets are to be distributed, bypassing the probate process. By placing assets in a trust, individuals can ensure that their property is managed and distributed according to their wishes outside of the will.
Legal Reference: Alabama Code Section 19-3B-101
Final Considerations on Property Distribution
Understanding which types of property do not pass under a will in Alabama is essential for effective estate planning. By being aware of assets such as joint property, life insurance policies, and trusts that are exempt from probate, individuals can make informed decisions to ensure their property is distributed according to their wishes. Consulting with a legal professional experienced in estate planning can provide further guidance on navigating the complexities of property distribution and ensuring a comprehensive estate plan.
Buried in Work’s Additional Resources
Buried in Work provides Alabama state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
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