What property does not pass under a will in Virginia?
When it comes to estate planning in Virginia, 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 Virginia, 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 Virginia 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 example of assets that bypass a will in Virginia. 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 Exempt from Probate
Assets held in a trust are typically exempt from probate in Virginia. A trust is a legal arrangement where a trustee holds assets on behalf of beneficiaries. Since the assets are owned by the trust and not the individual, they do not need to go through the probate process upon the individual's death.
Legal Code Reference
According to the Virginia Code, specifically Title 64.2 (Wills and Decedents' Estates), Section 64.2-516, certain property, such as joint accounts with rights of survivorship, 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 Transfer in Virginia
Understanding which assets do not pass under a will in Virginia is essential for effective estate planning. By being aware of the types of property that bypass probate, individuals can ensure a smoother transfer of assets to their intended beneficiaries. Whether it's joint property, life insurance policies, or assets held in a trust, knowing the rules and regulations can help streamline the estate administration process.
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