Settling a recently deceased individual’s final affairs can be a difficult job for the executor of the Texas estate. Though the executor has many obligations to address during probate, other loved ones may simply be concerned with when he or she will distribute property from the remaining estate. Though this action does take place during probate proceedings, some accounts do not have to go through the process in order to be distributed.
Transfer on death accounts allow for the assets in such accounts to transfer directly to a named beneficiary after the account holder’s death. This type of transfer is often appealing to individuals who do not want their assets to remain in probate for months or for their loved ones to have to wait that long to receive their bequests. Of course, not all accounts or property qualify as TOD.
Often, savings accounts, bank accounts, insurance policies and investment accounts qualify as TOD. However, it is important to remember that the laws regarding these accounts and their transferability vary from state to state. It is also important to remember that TOD accounts are only truly effective if the account holder has named the appropriate beneficiaries and has updated those designations as needed over the years.
Waiting to distribute property is one of the more tricky aspects of probate because many surviving loved ones want their property as soon as possible. Though transfer on death accounts can prove useful to this process, not all assets can be handled in this way. As a result, executors in charge of settling Texas estates may want to make sure that they take the appropriate steps when handling remaining assets.