Establish accounts with named beneficiaries / pay on death accounts

Certain accounts do not always pass through probate and instead transfer based on instructions in a beneficiary designation form. Likewise, a “payable on death” bank account will transfer to the beneficiary listed with the bank.

You might choose to pass these assets to beneficiaries based on the immediate need for funds after you pass away.

For example, perhaps a child needs access to a payable on death bank account because the funds inside are to be used for your funeral, or you intend your life insurance policy funds to allow your spouse to pay off the mortgage in full. Rather than waiting for probate, these accounts typically allow for an instant transfer of assets.

Talk to an accountant about how you can set your finances up to avoid probate and make settling your estate easier. Examples of accounts that have named beneficiaries and can transfer directly to beneficiaries include:

• Life insurance
• 401k
• IRA
• Investment accounts