What a Will, Will and Will Not Do

Sound confusing? Many Americans are confused when it comes to understanding what can and what cannot pass by their will and they assume that a will takes care of everything.

There are several situations in which a will does not control the transfer of an asset. Disposition of a decedent’s property is determined by the form of ownership of a particular asset or by a beneficiary designation form, which overrides the provisions of a will. For example, regardless of how perfect and well drafted a last will and testament may be, its terms cannot and do not override the terms of an IRA or 401(k) custodial agreement, a private and binding contract.

Here are just a few common assets that do not pass through a will: IRA, 401(k), Pension Plan, Annuity, Life Insurance Policy, Joint Tenancy Property, Community Property with Right of Survivorship, POD Accounts and Totten Trusts.