When most people think about estate planning, they picture a will or a trust. But those aren’t your only options. Depending on your situation, there may be other ways to transfer your assets that are simpler, faster, and just as effective. These tools can help you avoid probate and give you more control over who receives what. In this blog, we’ll look at some common alternatives and help you understand when they might work best for you or your loved ones.
Transfer-on-Death Designations
One way to transfer assets without using a will or trust is by setting up a transfer-on-death (TOD) or payable-on-death (POD) designation. These designations allow certain assets to pass directly to the person you name when you die. There’s no probate involved, and the process is usually quick and straightforward.
Common TOD or POD options include:
- Bank accounts (checking, savings, CDs)
- Brokerage and investment accounts
- Real estate (in states that allow TOD deeds)
- Vehicles (in some states)
This option can work well if you have a clear idea of who should receive a particular account or asset. It’s easy to set up—usually just a matter of filling out a form with your financial institution or local registry. That said, there are limits. These designations only apply to that specific asset, and you can’t always list backup beneficiaries. If your named person passes away before you and you haven’t updated the form, things could still end up in probate.
Joint Ownership Options
Joint ownership is another common method for passing assets without a will or trust. When two people own something jointly with rights of survivorship, the surviving owner typically receives full ownership automatically when the other passes away. This method is often used for:
- Real estate (such as a home owned by spouses)
- Bank or credit union accounts
- Vehicles or titled property
Joint ownership can be a quick and inexpensive way to transfer assets. There’s no court process involved, and ownership passes immediately upon death. However, it’s not without risk. Adding someone as a joint owner gives them access right away—not just after you’re gone. That can create problems if your relationship changes or if they have financial or legal issues of their own. In some cases, it could also trigger gift taxes or interfere with Medicaid planning.
Beneficiary Designations on Retirement Accounts and Life Insurance
If you have retirement savings or life insurance, you likely filled out a beneficiary form when you opened the account or purchased the policy. These forms take priority over what’s in a will or trust, and they allow the funds to transfer outside of probate.
Assets that use beneficiary designations include:
- IRAs and 401(k) plans
- Life insurance policies
- Pensions and annuities
These designations are flexible—you can name both primary and secondary (contingent) beneficiaries. But it’s important to review them regularly. Life changes like divorce, remarriage, or the birth of a child can make old designations outdated. Another thing to keep in mind: if you name a minor as a beneficiary, the funds may be held by the court or a guardian until the child becomes an adult. That’s something we can help you plan around if needed.
Why a Personalized Plan Still Matters
Even if you use these alternatives, you still need a plan that fits your life and goals. Quick solutions might seem appealing, but they don’t always work well on their own. Assets could be missed, beneficiaries could predecease you, or unintended consequences could create confusion or conflict.
At Surprenant, Beneski & Nunes, P.C, we take the time to understand your full picture—your family, your assets, and your wishes. Then, we help you decide which tools will serve you best. Sometimes, that’s a trust or a will. Other times, we build a strategy using beneficiary forms, account titles, and other direct-transfer methods. The right mix depends on your needs—not a template.
Let’s Build a Plan That Works for You
No matter how simple or complex your goals may be, Surprenant, Beneski & Nunes, P.C. is here to help you find the right path. You don’t have to rely solely on wills or trusts to protect what matters to you. Let’s work together to create a plan that reflects your wishes and gives your family clarity and peace of mind. Contact us today to schedule a conversation.