Covering All Bases

Although a will is a useful tool for transferring assets after death, many types of assets actually transfer before the will comes into play. Assets that transfer outside of a will do so without the involvement of a probate court. All remaining assets then transfer to beneficiaries according to the will through the probate process. As such, it is important to keep both will and non-will beneficiary designations in mind when establishing your estate plan. So, which assets will pass outside of your will, thus avoiding probate?

• Assets owned jointly with rights of survivorship

• Real estate, financial assets, and other property titled in the name of a living trust

• Financial assets with listed beneficiaries or transfer on death designations such as 401(k)s, IRAs, or other retirement accounts, investment accounts, and annuities

• Proceeds of life insurance policies with named beneficiaries

• Property such as a home or vehicle that has a designated transfer on death beneficiary

• Checking, savings, and other accounts with payable on death or transfer on death designations

It is helpful to think about a will as a catchall for assets that do not transfer to previously-designated beneficiaries. In addition to establishing a will, make sure to keep beneficiary designations up to date to insure your assets are distributed according to your wishes.