Which of the following is a non-probate asset category not typically a transfer by operation of law or contract?

• A. Joint tenancy with survivorship
• B. Property held in POA
• C. Life insurance
• D. Totten trust

Answer: (B)

Non-probate assets pass outside probate because ownership is structured to transfer automatically or by a contract. Joint tenancy with survivorship transfers to the surviving owner by operation of law when one owner dies. Life insurance proceeds go directly to the named beneficiary under the policy’s contract, bypassing probate. Totten trusts (payable-on-death arrangements) designate a beneficiary who receives the asset outside probate through a contractual or banking arrangement. A power of attorney, however, is a lifetime tool that authorizes someone to act for the principal; it does not transfer ownership upon death and ends at death. Therefore, property held under a power of attorney is not typically a non-probate asset.