Assets that skip probate are those that already say who gets them when the owner dies: property owned jointly with survivorship rights, accounts and policies with a named beneficiary, assets held in a living trust, and real estate or vehicles with a transfer-on-death designation. These pass directly to the survivor or beneficiary, usually without court involvement.

Used well, these tools can make things much simpler for your family. Used carelessly, they can override your will and send assets somewhere you never intended.

What does it mean for an asset to “skip probate”?

An asset skips probate when ownership passes automatically at death by contract, title, or trust, rather than through the court-supervised estate process. The will does not control these assets, and the executor (called a personal representative in Maryland and D.C.) generally does not distribute them.

That is the key point many people miss: a beneficiary designation or joint title usually wins over the will. If your will leaves everything equally to three children, but one child is the only beneficiary on your largest account, that child typically receives the whole account.

For how probate itself works and how long it can take, see: How Long Does Probate Take?

Do joint accounts and jointly owned property avoid probate?

Jointly owned property generally avoids probate when it is held with a right of survivorship, meaning the surviving owner automatically becomes the sole owner. Joint ownership without survivorship rights (often called tenancy in common) does not avoid probate; the deceased owner’s share passes through their estate.

The forms available depend on where you live.

Maryland and Washington, D.C.

Both Maryland and D.C. recognize joint tenancy with right of survivorship and tenancy by the entirety, a form of ownership available to married couples in which the surviving spouse automatically owns the property. Tenancy by the entirety can also offer some protection from the creditors of just one spouse, though the details are specific and fact-dependent.

Texas

Texas is a community property state and does not use tenancy by the entirety. Instead, spouses can sign a written community property with right of survivorship agreement, which lets community property pass to the surviving spouse outside probate (Tex. Est. Code § 112.051).

Texas is also strict about joint bank accounts: survivorship rights require a written agreement signed by the person who dies. Simply labeling an account “joint” or “JT TEN” is not enough under Texas law (Tex. Est. Code § 113.151).

Do beneficiary designations avoid probate?

Yes. Accounts and policies with a valid, living beneficiary generally pass directly to that beneficiary without probate. Common examples include:

• Life insurance and annuities.

• Retirement accounts such as 401(k)s and IRAs. Federal law can give a spouse rights in some employer plans, so naming someone else may require the spouse’s written consent.

• Payable-on-death (POD) bank accounts, where the bank pays the named person on your death.

• Transfer-on-death (TOD) brokerage accounts, the investment-account equivalent.

The beneficiary typically claims the asset by giving the institution a death certificate and completing its claim forms.

Does a living trust avoid probate?

Yes, for assets actually titled in the trust’s name. A revocable living trust is a legal arrangement you control during your life; at your death, the successor trustee you chose manages and distributes the trust assets privately, usually without court supervision.

The catch is funding. A house or account left in your personal name, and not retitled to the trust or given a beneficiary, generally still goes through probate. For more, see: Will vs. Living Trust: Which One Makes Sense for Your Family?

Can real estate pass by a transfer-on-death deed?

Yes in Texas and D.C., and in Maryland beginning October 1, 2026. A transfer-on-death deed lets a homeowner name a beneficiary who receives the property at death, while the owner keeps full control and can change or revoke it during life. It must generally be signed and recorded in the land records before the owner’s death.

• Texas has allowed transfer-on-death deeds since September 1, 2015 (Tex. Est. Code ch. 114).

• Washington, D.C. allows them under the Uniform Real Property Transfer on Death Act (D.C. Code § 19-604.01 and following).

• Maryland has newly enacted the Maryland Transfer-on-Death Deed Act, which takes effect October 1, 2026. Before this law, Maryland homeowners commonly used a “life estate deed with powers” to achieve a similar result, and the new law addresses how those earlier deeds are treated.

Because Maryland’s law is so new, existing plans and deeds are worth reviewing with counsel before relying on either approach.

Do vehicles have to go through probate?

Not always. Maryland, D.C., and Texas each let an owner name a transfer-on-death beneficiary for a vehicle title, so the vehicle can pass without probate.

• Maryland: A sole owner can apply to the MVA to add a TOD beneficiary to the title.

• Washington, D.C.: The DMV allows one individual beneficiary per title.

• Texas: Owners can file a beneficiary designation for a motor vehicle with the county tax office. A will does not override that designation.

Jointly titled vehicles typically pass to the surviving owner, and each jurisdiction has simplified procedures for some vehicles left without a beneficiary.

Non-probate assets at a glance

What are the most common beneficiary mistakes?

The most common mistakes are forgetting to update designations, naming a minor, naming “my estate,” and adding a child to an account for convenience. Each one can quietly send money somewhere other than where you intended.

• Outdated beneficiaries. A former spouse, a relative who has died, or a beneficiary form from decades ago can control the outcome. Review designations after marriage, divorce, births, and deaths.

• Naming a minor. Financial institutions generally will not pay significant sums directly to a child, which may require a court-supervised guardianship or custodianship. A trust or custodial designation is often a better route.

• Naming “my estate.” This sends the asset back into probate and can expose it to creditors. In Maryland, it can also affect inheritance tax: life insurance paid to a named beneficiary is exempt, while insurance paid to the estate is not.

• Adding a child to a joint account. A child added “just to help pay bills” may become the sole legal owner at your death, cutting out siblings, and the account may be exposed to that child’s creditors during your life.

• Medicaid estate recovery. States can seek repayment of certain Medicaid benefits from a person’s estate after death. How far that reaches beyond the probate estate varies, so anyone receiving or expecting long-term care benefits should get advice before changing ownership of assets.

Frequently asked questions

Does a will override a beneficiary designation?

Generally, no. The beneficiary designation or survivorship title controls, regardless of what the will says. To change who receives the asset, update the designation or title directly with the institution.

What happens if the beneficiary died before me?

It depends on the account terms and state law. If there is no surviving primary or contingent beneficiary, the asset often goes to your estate and through probate. Naming a contingent (backup) beneficiary helps avoid this.

Do non-probate assets still count for estate taxes?

Yes. Assets that skip probate are generally still included when calculating federal, Maryland, or D.C. estate tax, and some may be subject to Maryland inheritance tax.

Can creditors reach assets that skip probate?

Sometimes. Depending on the asset and the jurisdiction, certain non-probate assets can be reached for the deceased person’s debts if the probate estate is not enough. Retirement accounts and life insurance often have separate protections.

Talk it through with us

A few forms and a deed can make things far easier for the people you love, as long as they fit together with the rest of your plan. We help families review beneficiary designations, retitle assets, and settle estates when someone has died. Learn more about our probate and trust administration services. For flat fees over $1,500, fotoFlex lets you pay the fee in 3 monthly payments, with no interest and no fees.

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This article is general information, not legal advice. Reading it does not create an attorney-client relationship.