What happens to property governed by probate avoidance techniques?

Property governed by probate avoidance techniques is specifically structured to avoid the probate process. Techniques such as establishing trusts, joint ownership, and payable-on-death accounts allow assets to pass directly to beneficiaries without going through the formalities of probate court. This means that the property is effectively removed from the decedent’s probate estate, facilitating a quicker and often less complicated transfer of assets to the intended recipients.

This approach helps to bypass the delays and potential costs associated with probate proceedings, ensuring that beneficiaries receive their inheritances without the complications of court involvement. Hence, the correct understanding is that this property does not enter the probate process and is excluded from the estate for distribution, aligning with the nature of probate avoidance techniques.

In contrast to other options, intestate succession rules typically apply only when there is no valid will and no probate avoidance techniques in place. If property passes through the decedent's will, it means it is part of the probate estate, contradicting the principles of probate avoidance. The state claiming the property reflects issues such as unclaimed property or escheatment, which does not directly relate to the operation of probate avoidance methods. Therefore, the answer correctly identifies the unique treatment of such property.