Think Your Will Governs Who Gets Your Estate? Check Your Beneficiary Designations!

Designation of will beneficiaries illustration.

When most people think of their “estate plan,” they think of their Wills. And it is true that a Last Will and Testament governs how your probate assets will be distributed upon your death. But what is a probate asset?

You might be surprised to learn that there may be significant assets that would pass outside your Will as “non-probate” assets. These can include assets that have beneficiary designations, as well as property held in joint names.

For many people, retirement assets (IRAs and 401(k)s, for example) make up a majority of their estates. However, these assets may be governed by a beneficiary designation selected many years ago, and may not reflect your current estate planning wishes. Life insurance will also pass to the beneficiary you have named.

Similarly, a home or other real property owned by joint tenants will not pass under a Will, but will pass by right of survivorship. A bank account may have a joint owner or a “transfer on death” designation that will cause it to pass outside your Will.

So when considering your estate plan, don’t forget to consider non-probate assets.

If you would like further information regarding estate planning, feel free to contact Vanarelli & Li, LLC.

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