will substitutes
Will substitutes are methods used instead of a will to transfer one’s property / assets upon their death. Will substitutes are different from regular wills because the title of the asset transfers to the death beneficiary at any point, including during the lifetime of the donor . On the other hand, in a will, there is no asset title transfer before the death of the donor. Will substitutes can also avoid probate court because the title of the asset is transferred before the donor's death, thus proceeding quicker than other types of estate planning .
Besides this difference, will substitutes are functionally indistinguishable from a will because the death beneficiary receives assets at the death of the donor and will substitutes convey no lifetime benefits (personal enjoyment) to the death beneficiary during the lifetime of the donor.
Examples of will substitutes:
- Joint Tenancy
- Pension Funds
- Life Insurance Policies
- Joint Bank Accounts
[Last reviewed in July of 2024 by the Wex Definitions Team ]
Keywords
Wex
- LIFE EVENTS
- financial events
- wills
- PROPERTY
- trusts
- inheritances & estates
- wex definitions
- family law
- property law
- money and financial problems