Assets That Cannot be Transferred with a Will
While the purpose of a Will is to transfer property to whomever you designate (beneficiaries), there are things that can be “transferred by a binding probate avoidance device & therefore cannot be transferred by a Will. This means that once you change the form of ownership on the following pieces of property, your Will will have no effect on it.
Note - As you will see, “Property” here doesn’t just mean land or a home. “Property” here includes your assets such as money, land, cars, etc.
Property in a living trust with beneficiaries designated.
Property held in Joint Tenancy. Joint Tenancy carries with it a right of survivorship, meaning that upon your death, your share automatically goes to the surviving joint tenant. If both joint tenants pass away simultaneously however, your may leave your share of the property by Will.
Money a Totten Trust (type of trust where a party places money in a bank account with instructions that upon their death, whatever remains in the account will pass to a named beneficiary) or in pay-on-death accounts where beneficiaries are designated. The beneficiary on the account inherits the remaining funds and therefore the funds are not included as a part of your estate.
Real property or vehicles transferred by transfer-on-death registrations. Similar to a pay-on-death bank account, the real property or vehicle goes directly to the beneficiary designated on the deed/registration. Keep in mind, transfer-on-death deeds are not available in all states and carry their own host of advantages or disadvantages. They are currently recognized in California, but there is no guarantee they will be here to stay.
Life insurance proceeds payable to one or more named beneficiaries. Again, similar to pay-on-death accounts, the funds go directly to the named beneficiary(ies).
Funds remaining in retirement or investment plans (pensions, 401(k)s, IRAs, etc.) where beneficiaries are designated. The funds go directly to the named beneficiary(ies).
Property promised to another through another agreement such as a prenuptial agreement, living together contract, partnership agreement, corporate shareholder agreement, etc.
As you can see, there are a multitude of ways one can transfer property upon death outside of a WIll. If you would like to schedule a complimentary consultation to meet with Dale Bethel to go over your Estate Planning needs, you are welcome to schedule a meeting online here or call our office at 909-307-6282.