The Woodlands, TX estates & probate attorney James H. Stilwell discusses the types of assets that can pass without probate. When individuals approach the firm following the passing of a family member, they commonly seek advice regarding the probate process. Typically, the attorney initiates the conversation by addressing life insurance matters. Life insurance policies usually come with beneficiary designations, allowing assets with such designations to bypass the probate process.

Likewise, individuals possessing retirement assets like 401(k)s or IRAs often have already designated beneficiaries for these holdings. These designated beneficiaries enable the assets to transfer smoothly outside of the probate realm, guided by the contractual arrangements associated with them.

It’s worth noting that many people may not be aware of the possibility to designate beneficiaries for various assets. As an illustration, the attorney and their spouse have designated beneficiaries for their bank accounts, ensuring that these assets transition seamlessly to the surviving spouse. In Texas, individuals can even designate a beneficiary for their automobile.

In recent years, a growing trend has emerged where individuals opt to place beneficiary designations on their home deeds. This practice proves particularly advantageous since a house frequently constitutes an individual’s most substantial asset. Incorporating a beneficiary designation on the house deed facilitates a hassle-free transfer of property ownership, eliminating the necessity for probate proceedings. This approach streamlines the process, alleviating potential burdens on surviving loved ones.