What property does not pass under a will in Washington, DC?
When it comes to estate planning in Washington, DC, 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 bypass a will in Washington, DC, including joint property, life insurance policies, and trusts.
Joint Property
One common type of property that does not pass under a will in Washington, DC, is joint property. When property is held jointly with rights of survivorship, it automatically transfers 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 typically bypasses a will in Washington, DC. 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 in Washington, DC. A trust is a legal entity that holds property 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
In Washington, DC, the laws governing probate and estate planning can be found in the District of Columbia Official Code, Title 20 (Probate and Administration of Decedents' Estates). Specific sections, such as Title 20, Chapter 3 (Intestate Succession and Wills), outline the rules regarding property distribution and probate procedures.
Maximizing Your Estate Plan
Understanding which assets do not pass under a will in Washington, DC is essential for creating a comprehensive estate plan. By utilizing joint property ownership, life insurance policies, and trusts, individuals can ensure that their assets are transferred efficiently to their intended beneficiaries without the need for probate.
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