Property that passes directly to designated beneficiaries or joint owners upon death without going through probate. Common examples include jointly-owned property with right of survivorship, life insurance with named beneficiaries, retirement accounts, and assets held in living trusts. Not controlled by the will.
Assets that automatically go to someone when you die, without going through probate or your will. Common examples: jointly-owned homes (go to surviving owner), life insurance (goes to named beneficiary), superannuation/retirement accounts with beneficiary designations, bank accounts with payable-on-death beneficiaries. These bypass your executor and transfer directly. Your will doesn't control them—their own beneficiary designations or ownership structure does.
⏱ When you'll encounter this term
- Jointly-owned property with a spouse or partner
- Life insurance policies with named beneficiaries
- Retirement accounts and superannuation
- Bank accounts with payable-on-death designations
- Assets held in living trusts
"When Dad died, his house went straight to Mum because they owned it as joint tenants—it was a non-probate asset. But his car was in his name only, so it went through probate as part of his estate."
💡 Did you know?
Many people are surprised to learn that their will doesn't control non-probate assets. If your life insurance names your ex-spouse, or your superannuation has an outdated beneficiary, those assets go to the named person—not who you specified in your will. Always review and update your beneficiary designations.