Probate & Beneficiary Designations

What probate is

Probate is the court process that follows a death: the will is validated, an executor or administrator is appointed, creditors are notified and paid, and remaining assets are distributed — under the will if there is one, under intestacy law if not. Timelines vary by state and estate complexity, from a few months for simple estates to a year or more when there are disputes, businesses, or out-of-state property. Filings are public record.

What skips probate automatically

Four categories of assets bypass probate regardless of what the will says: assets titled to a trust; accounts with beneficiary designations (retirement plans, IRAs, life insurance, annuities); payable-on-death bank accounts and transfer-on-death securities registrations; and property held in joint tenancy with right of survivorship, which passes to the surviving owner by operation of law.

The SEC's Investor.gov explains that TOD registration lets you pass brokerage securities directly to a named beneficiary at death, outside probate. Most states also offer TOD deeds for real estate.

The beneficiary form beats the will

Beneficiary-designated assets go to whoever is on the form — even an ex-spouse, even if the will says otherwise. The IRS's guidance on retirement-plan beneficiaries reflects this: the designated beneficiary under the plan receives the assets. The practical rule: audit every beneficiary designation after a marriage, divorce, birth, or death, and keep the forms consistent with the rest of the plan.

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