What property does not pass under a will in Utah?
When it comes to estate planning in Utah, it's crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will transfer to beneficiaries outside of the will. In this article, we will delve into the various forms of property that do not pass under a will in Utah, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in Utah 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 probate.
Life Insurance Policies
Life insurance policies are another asset that bypasses a will in Utah. The proceeds from a life insurance policy are paid directly to the named beneficiaries and do not go through probate. 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 Utah. A trust is a legal entity that holds assets on behalf of a beneficiary. When the creator of the trust passes away, the assets held in the trust are distributed according to the terms of the trust document, bypassing the probate process.
Legal Code Reference
According to the Utah Code Section 75-2-101, certain assets, such as joint property, life insurance policies, and assets held in a trust, are not considered part of the probate estate and do not pass under a will.
Final Considerations on Property Passing Under a Will in Utah
Understanding which assets do not pass under a will in Utah is essential for effective estate planning. By being aware of the types of property that bypass probate, individuals can ensure that their assets are distributed according to their wishes in a timely and efficient manner.
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