How To Avoid Probate (Will Substitutes)

Probate Avoidance Method

Available To

Control Over Asset

Appropriate For

Upon Death

Joint Tenancy With Right of Survivorship

Anyone

Shared with joint tenants

Any type of property

Your share is automatically distributed equally to the other joint tenants

Tenancy By the Entirety

Married people

Shared with spouse

Any type of property

Asset automatically becomes fully owned by spouse

Community Property

Married people who live in AZ, CA, ID, LA, NM, NV, TX, WA, WI

You and your spouse each control one-half of the property

Any type of property

Limited Probate Proceeding required

Community Property with Right of Survivorship

Married people who live in AZ, CA, ID, LA, NM, NV, TX, WA, WI

You and your spouse each control one-half of the property

Any type of property

Asset automatically becomes fully owned by spouse

Payable on Death Accounts / Totten Trusts

Anyone

You control the asset entirely

Bank Accounts; Certificates of Deposit

Asset automatically transfers to designated beneficiary

Transfer on Death Accounts

Anyone

You control the asset entirely

Stocks, Bonds, Autos in a few states

Asset automatically transfers to beneficiary

Life Insurance Beneficiary Designation

Owner of Life Insurance Policy

Owner controls the asset

Life Insurance

Proceeds payable to designated beneficiary

Retirement Plan Beneficiary Designation

Owner of Retirement Plan Account or Benefits

Owner controls

Retirement Plans

Proceeds payable to designated beneficiary

Trusts

Anyone

Trustee (Can be grantor of trust)

Any type of property

Proceeds payable as specified in trust document