The Woodlands, TX estates & probate attorney James H. Stilwell discusses the types of assets that can pass without probate. He states that when clients approach the firm after the passing of a loved one, they often seek guidance on the probate process and what needs to be addressed. He typically begins by reviewing life insurance policies, noting that assets with designated beneficiaries generally pass outside of probate.

Similarly, retirement accounts such as 401(k)s or IRAs usually have beneficiary designations, allowing these assets to transfer directly to the named beneficiaries without probate. He points out that many people are unaware that a wide range of assets can have designated beneficiaries. For example, he and his wife have designated beneficiaries on their bank accounts to ensure a smooth transfer to the surviving spouse. In Texas, it is even possible to designate a beneficiary for a vehicle.

In recent years, he notes, it has become increasingly common to place beneficiary designations on the deed of a house. This can be particularly beneficial, as a home is often an individual’s most valuable asset. By designating a beneficiary on the deed, the property can transfer directly to the intended recipient, avoiding probate and easing the administrative burden on surviving family members.