Does One Asset Have To Go Through Probate?

8 Nov 2022 · 1 min

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In this video, Jerry Taylor answers a viewer’s question about whether a single $500,000 savings account left to heirs via a will must go through probate. He explains that any asset transferred by a will, regardless of size, requires probate unless the account has a designated beneficiary. He outlines two primary alternatives to avoid probate: (1) adding a payable‑on‑death (POD) beneficiary directly with the bank, and (2) retitling the account into a trust so the funds can be distributed to the three named nieces upon death. He also notes a potential complication: if a named niece dies before the account holder and the beneficiary designation isn’t updated, that niece’s share would become part of her estate and could be subject to probate.

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So the question is, does my will still have to go through probate if the only asset I'm conveying is one savings account with $500,000 in it? And the answer to that is yes. Even though it's only one asset, if you're conveying that to your heirs through a will, it will have to go through probate to be legally enforceable. Unless there's a beneficiary on that account, the bank would require a court order to convey that money to your heirs. So what are your options instead of a will? You can go to your bank and tell them you want to create a payable-on-death beneficiary. The only wildcard in situation would be if one of your nieces predeceases you and you don't change the beneficiaries. If that happened, that share would have to be probated by the deceased niece's estate. The other option would be to create a trust. You would change that bank account to a trust account, and then at your death, that money would be split immediately between your 3 nieces.