Which statement correctly describes non-probate transfers to retirement benefits in New York law?

• A. They can be defeated by a testamentary disposition.
• B. They are not protected from contractual limitations.
• C. They are contractual rights and limited by the plan's provisions.
• D. They require probate to transfer.

Answer: (C)

Non-probate transfers to retirement benefits are rights created by the retirement plan contract. The beneficiary’s right to receive benefits comes from the contract between the participant and the plan, not from the decedent’s will. Because these rights arise from a contract, they are governed by the plan’s terms—who is named, any spousal consent rules, survivor options, and other plan provisions. As a result, these transfers pass outside probate and are limited by the plan’s provisions, i.e., they are contractual rights and restricted by the plan.