When it comes to estate planning in New York, it’s crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will be distributed according to specific rules, regardless of what is stated in a will. In this article, we will delve into the various forms of property that do not pass under a will in New York, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in New York is joint property. When two or more individuals own property jointly with rights of survivorship, the property automatically passes to the surviving owner(s) upon the death of one 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.
Life Insurance Policies
Proceeds from life insurance policies are another example of assets that bypass a will in New York. Life insurance policies typically designate a beneficiary to receive the death benefit upon the insured’s passing. The proceeds from a life insurance policy go directly to the named beneficiary and are not considered part of the decedent’s estate for probate purposes.
Trusts
Assets held in a trust are also exempt from passing under a will in New York. A trust is a legal arrangement where a trustee holds assets on behalf of a beneficiary. Upon the trust creator’s death, the assets held in the trust are distributed according to the terms of the trust agreement, bypassing the probate process and the instructions in the will.
Legal Code Reference
In New York, the laws governing the distribution of assets that do not pass under a will can be found in the New York Estates, Powers and Trusts Law (EPTL). Specifically, EPTL Section 4-1.1 outlines the rules regarding the distribution of property that is not disposed of by a will, including joint property, life insurance policies, and assets held in trusts.
Ensuring Proper Estate Planning
Understanding which assets do not pass under a will in New York is essential for effective estate planning. By being aware of how joint property, life insurance policies, and trusts operate outside the scope of a will, individuals can make informed decisions to ensure their assets are distributed according to their wishes.
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