Transferring Nonprobate Property By Contracts

Estate planning not only includes deciding who will inherit your assets but also how your heirs will receive them. One method is to transfer your property by contracts that you sign as part of your estate plan.

It took almost two years before her heirs received any of their inheritance. Amy recently died.

True or False: Amys assets were most likely distributed by the probate court.

False

True

Maria has a life insurance policy. She designated her best friend as her primary beneficiary and her father as the contingent beneficiary.

True or False: If Maria dies after her best friend dies but before her father dies, the proceeds from the insurance policy will go to her father.

True

False

Eileen and Jesus have been married for many years. While Eileen was away on business, Jesus closed out the household checking account.

True or False: Jesus was able to do this because they both owned the account as joint tenants.

True

False

Ginny is single and has three close friends. In the event of her death, she wants to leave them some money and doesnt want them to have to wait for probate on her estate to be completed.

True or False: One way to achieve her goal would be to open three savings accounts and sign payable-on-death designations naming each friend as the beneficiary.

False

True