Non Probate Assets
Financial accounts like checking accounts, savings accounts, C.D.'s and retirement accounts are non probate assets. That means that a person's will does not control who gets the funds. The beneficiary designation on those accounts determine who gets the funds. They do not pass through probate. The same is true of joint accounts with right of survivorship.
Pay On Death Beneficiary Designation
Owners of the financial accounts sign a Pay On Death Beneficiary Designation form POD. The person designated as the pay on death beneficiary of those accounts is paid the funds on the death of the owner of the accounts. Since these accounts are paid directly from the financial institution to the beneficiary, they do not go through probate.
Incompetency To Make Beneficiary Designation
A person can take advantage of the owner of the financial accounts because they are mentally incompetent or are under the undue influence of the person. This is especially prevalent when the owner is elderly. When the owner dies, if nothing is done, the bad person keeps all the money in the accounts because he has tricked or coerced the owner to change the beneficiary designation. This is not an uncommon event. When this happens, the heirs of the decedent need to file the appropriate papers in the probate court even though the assets are non probate assets. The probate court can set aside the pay on death beneficiary designation if the facts warrant. 13-12-00026-CV.
Was This Post Helpful
It may also be helpful to others so consider sharing it on Facebook, Twitter, Google+ or Linkedin by clicking the buttons.
Contact Us.
Tell me what happened
Write to me through the contact form: what happened, roughly when, and who is involved. I read these myself. Writing means our first conversation can be about your situation instead of getting me up to speed.
This page is general information about Texas law. It is not legal advice about your situation, and reading it does not create an attorney–client relationship. These matters turn heavily on specific facts and specific dates, and the law has exceptions this page does not cover. You should not take, or refrain from taking, any action based on this page. Discuss your circumstances with an attorney who can advise you on them.