Investment, brokerage, or cash accounts with TOD instructions in placeĪssets with joint ownership with right of survivorship Personal property, including valuable items Retirement accounts: 401(k)s, 403(b)s, IRAs with named beneficiariesĬash, cash accounts that don’t allow TOD designation Retirement accounts or investment accounts that are missing beneficiaries or transfer on death (TOD) instructions Common Types of Inherited Assets Usually subject to probate Generally speaking, an asset that allows the owner to name a beneficiary will not have to go through probate. Probate is also public record, so it decreases the level of privacy of the estate. The probate process varies by state-many states offer a quicker, less expensive option if the assets subject to probate are below a certain value (for example, $25,000 or $50,000). Probate is a legal process for settling an estate, whether one has a will or not. These types of assets usually avoid probate and the associated fees and may avoid certain taxes, helping you maximize what you leave to your beneficiaries.Īssets that pass through the will must undergo the probate process. Some types of assets allow for the naming of beneficiaries (such as IRAs and investment accounts), which enables a direct transfer of the asset without involving the will and has greater authority than the will. Note that, generally, if you are married and you name anyone other than your spouse as a 401(k) beneficiary, consent of your spouse is required.įor assets that do not allow for the naming of beneficiaries (such as some bank accounts and real estate), the will is the place to designate who will get them, as well as any related special instructions. Thus, it's essential to name beneficiaries on assets that allow it-such as IRAs, 401(k)s, and brokerage accounts-and to keep those designations up to date. This means the named beneficiary will receive the asset, rather than anyone else named in the will, and usually the asset will not have to go through probate. For assets that move outside the will and probate process, if the named beneficiary conflicts with anything stated in the will, then the named beneficiary prevails.

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