What property does not pass under a will in Rhode Island?
When it comes to estate planning in Rhode Island, it's crucial to understand which assets may not pass under a will. Knowing what property bypasses a will can help individuals ensure their assets are distributed according to their wishes. In Rhode Island, certain types of property are exempt from probate and do not need to go through the will process.
Joint Property
One type of property that does not pass under a will in Rhode Island 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 the terms of the will.
Life Insurance Policies
Life insurance policies are another example of assets that bypass a will in Rhode Island. The proceeds of a life insurance policy are paid directly to the named beneficiaries and do not form part of the deceased individual's probate estate. This allows for a swift and efficient transfer of funds to the intended recipients.
Trusts
Assets held in a trust are also exempt from probate and do not pass under a will in Rhode Island. A trust allows individuals to transfer assets to a trustee who manages them for the benefit of the trust's beneficiaries. Since the assets are owned by the trust, they do not need to go through the probate process and are distributed according to the terms of the trust document.
Legal Code Reference
According to Rhode Island General Laws Title 33 (Probate Practice and Procedure), Section 33-1-1, certain property, such as joint property, life insurance policies, and assets held in trust, may not pass under a will and are exempt from probate.
Ensuring Proper Estate Planning
Understanding which assets do not pass under a will in Rhode Island is essential for effective estate planning. By utilizing strategies such as joint ownership, life insurance policies, and trusts, individuals can ensure that their assets are distributed efficiently and according to their wishes.
Final Considerations on Estate Distribution
Proper estate planning involves careful consideration of all assets and how they will be distributed upon one's passing. By being aware of the types of property that bypass a will in Rhode Island, individuals can take the necessary steps to ensure their estate is handled in the manner they desire.
Buried in Work's Additional Resources
Buried in Work provides Rhode Island state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.