What Happens to Assets Like 401K's Not Named in a Will?
Full Question:
Answer:
The answer will depend on the language of the will and whether it contains a residuary clause. A residuary clause deals with the remainder, or the "residue" of the estate, not specifically bequeathed to heirs. The leftover assets of the estate will be distributed according to the residuary clause, which specifies how property that isn't specifically bequeathed will be distributed. For example, the wills offered by USLegal contain residuary clauses to deal with assets otherwise not specifically named in the will.
Some assets, such as insurance policies or cd’s may name a beneficiary or pass automatically to a surviving joint owner outside the probate estate of the will. Assets held in trust, or in an account or policy with an insurer or financial institution with a named beneficiary, typically pass outside the probate process. Such assets go to the named beneficiary outside the probate process. If it is a survivorship account, or transfer on death account, it passes outside the probate process. Property held in trust is distributed according to the terms of the trust.
