What property does not pass under a will in Tennessee?
When it comes to estate planning in Tennessee, it's crucial to understand which assets may not pass under a will. Certain types of property bypass the probate process, ensuring a smoother transfer of assets to beneficiaries. In this article, we will delve into the various forms of property that do not pass under a will in Tennessee, 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 Tennessee 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 probate.
Life Insurance Policies
Life insurance policies are another asset that typically bypasses a will in Tennessee. When a policyholder passes away, the proceeds of the life insurance policy are paid directly to the named beneficiaries. These proceeds are not considered part of the deceased's estate and are therefore exempt from probate.
Trusts Exempt from Probate
Assets held in a trust are generally not subject to probate in Tennessee. A trust is a legal arrangement where a trustee holds assets on behalf of beneficiaries. Upon the death of the trust creator, the assets held in the trust are distributed according to the terms of the trust document, bypassing the probate process.
Legal Code Reference
In Tennessee, the laws governing probate and estate planning can be found in the Tennessee Code Annotated, Title 31 (Decedents' Estates) and Title 32 (Wills). Specifically, Title 31 addresses the administration of estates, including the probate process, while Title 32 outlines the requirements for creating a valid will in the state.
Final Considerations on Property Passing Under a Will
Understanding which types of property do not pass under a will in Tennessee 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 without unnecessary delays or complications.
Buried in Work's Additional Resources
Buried in Work provides Tennessee state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.