In estate planning, what is the term for assets that are transferred directly to a beneficiary upon death?

The term for assets that are transferred directly to a beneficiary upon death is indeed non-probate assets. Non-probate assets are those that bypass the probate process and transfer immediately to the designated beneficiary upon the death of the owner. This can include assets like life insurance policies, retirement accounts, and properties held in joint tenancy.

Non-probate assets have the advantage of being able to provide quick access to funds and resources for beneficiaries without the delays and expenses associated with probate. This is particularly beneficial for estate planning, as it allows for a more efficient distribution of the individual's estate according to their wishes.

In contrast, probate assets are those that must go through the probate process before they can be distributed to heirs. Testamentary assets refer specifically to assets that are distributed according to a will. Residuary assets are the remaining assets in an estate after specific bequests have been made, which may still go through probate. Understanding these distinctions is key in estate planning and can help individuals make informed decisions about how to structure their assets.