Besides life insurance, many assets can pass directly to a named beneficiary and generally avoid probate, meaning they typically do not need to be distributed through your Will. This is often one of the simplest planned-giving methods.
Financial Accounts
- Retirement Accounts
- IRA (Traditional and Roth
- 401k, 403(b), 457 plans
- Pension survivor benefits
- Annunities
- Fixed, variable, and indexed annuities usually allow beneficiary designations
- Bank Accounts
- Payable-on-Death (POD) checking accounts
- POD savings accounts
- Investment Accounts
- Transfer-on-Death (TOD) brokerage accounts
- Mutual fund accounts with designated beneficiaries
Real Estate
- Transfer-on-Death (TOD) Deeds (available in some states)
- Allows real estate to pass directly to a beneficiary upon death.
- Joint Ownership with Rights of Survivorship
- Joint tenants with right of survivorship
- Tenancy by the entirety (for married couples in some states)
Other Assets
- Health Savings Accounts (HSAs) with named beneficiaries
- Some stock certificates or bond registrations that permit TOD registration
- Business interests if governed by a buy-sell agreement or operating agreement that specifies succession
Important Caveat
A Will generally does not override beneficiary designations. For example, if your IRA names your daughter as beneficiary but your will leaves everything to your son, the IRA Will usually go to your daughter
Common Estate Planning Strategy
Many people review and coordinate:
- Life insurance beneficiaries
- Retirement account beneficiaries
- POD/TOD account beneficiaries
- Real estate titling
- Last Will & Testament
- Any trust documents
Making sure these all work together can significantly reduce probate and ensure assets go where intended.
By sharing your plans to leave a gift through a beneficiary designation, you will be welcomed into the Lewis Cass Legacy Society. Members of this special group are recognized each year at an annual gala celebrating those who have chosen to leave a lasting legacy through their charitable commitment. Let us know about your plans by completing this form: https://partner.freewill.com/beneficiaries/michiganmasons
If you’d like to talk about whether this option is right for you, please call the Michigan Masonic Charitable Foundation at 1-800-994-7400.