Which asset transfer is considered non-probate by contract?

• A. Life insurance
• B. Joint tenancy
• C. Totten trust
• D. Property in trust

Answer: (A)

Non-probate transfers are assets that pass outside the will or intestacy process, often because a contract or beneficiary designation directs who gets them. Life insurance fits this exactly: the policy is a contract between the insured and the insurer, and the death benefit is paid directly to a named beneficiary according to the contract, not through the probate system. The beneficiary designation in the policy controls who receives the funds, so the asset bypasses probate entirely.

Other options involve mechanisms that bypass probate but not through a contract with a beneficiary. Joint tenancy passes by right of survivorship among co-owners; the surviving owner automatically gains ownership, independently of any contract with the deceased. A Totten trust (payable-on-death account) and property held in trust are also non-probate, but they arise from a trust arrangement or account designation rather than a contract of the type created by an insurer policy.