Some Assets Better Left Outside of Will

Your will might not have the final say on your estate. Many assets transfer outside probate through other legal mechanisms that supersede will instructions.

Retirement Accounts

Beneficiary designations on retirement accounts override will provisions. The plan administrator distributes funds to named beneficiaries without court involvement, making probate unnecessary.

Life Insurance Policies

The beneficiary designation on a life insurance policy determines who receives proceeds, regardless of what your will states. Some states automatically revoke ex-spouse designations following divorce.

Bank Accounts

Accounts titled with transfer on death (TOD), payable on death (POD), or joint tenancy with right of survivorship (JTWROS) bypass will instructions. Check your account signature card to verify which designation applies. For TOD or POD accounts, beneficiaries can present a death certificate and identification to the bank to claim funds. JTWROS accounts automatically transfer to the surviving account holder.

Real Estate

Property owned jointly with right of survivorship or as tenants by the entirety transfers automatically to the surviving spouse without court proceedings. Some states also permit transfer on death deeds, allowing you to name a beneficiary directly on the property deed.

Trusts

Assets held in trusts are not governed by wills and distribute outside probate. However, you must retitle accounts and designate beneficiaries specifically to include assets in the trust.

Proper planning ensures your assets reach intended recipients efficiently. Consider consulting an estate planning professional to coordinate these various transfer mechanisms with your overall plan.

If you or a loved one needs assistance with estate planning, do not hesitate to contact The Stegall Law Firm for a consultation.