Does all property pass through probate?
In short, the answer is no. Common types of property that are not part of the probate estate include: property that is owned jointly with rights of survivorship (including tenants by the entirety) and property with a beneficiary designation like Individual Retirement Accounts (IRAs), transfer on death accounts (TODs), payable on death accounts (PODs) and life insurance. Jointly held property passes to the surviving co-owner(s) and property with a beneficiary designation passes to the named beneficiary. Assets held in trust prior to death also avoid probate. For these reasons, trusts and accounts with beneficiary designations are often referred to as “will substitutes,” because the property is distributed to those you designate, but not according to your will. Be mindful that if a minor or an incapacitated person is designated as a beneficiary, a guardianship may be necessary for them to receive the property. For more on Massachusetts guardianships, click here.
