Which Assets Don't Have to Go Through Probate?
Typically, assets with a designated beneficiary don't have to go through probate. These assets pass directly to the beneficiary, meaning that the probate court doesn't have to transfer ownership. However, simply naming a person in the will doesn't make them a beneficiary. Assets with beneficiaries include life insurance, pensions, and other accounts where you can directly attach someone's name to the asset.
Jointly owned property also passes directly to the survivor. Jointly owned property could include cars, bank accounts, real estate, and other assets with two legally recognized owners.
Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) typically don't go through probate. Since these funds have beneficiaries attached, they transfer directly to the person named in the asset. The funds could be added to the survivor's existing RRSPs or RRIFs.
Finally, setting up a trust could reduce or eliminate the probate process. When the decedent sets up a trust, they place assets in the trust and name a beneficiary. Technically, they don't own these assets once they've placed them in the trust. The assets go directly to the beneficiary after their death with no need for a property transfer.