Investment Accounts
Learn how investment accounts interact with estate planning and revocable living trusts. Discover what transfers by beneficiary and what may go through probate.
Do investment accounts automatically transfer to my beneficiaries when I die?
Investment accounts with named beneficiaries — like IRAs or 401(k)s — typically transfer directly to those beneficiaries outside of probate. However, taxable brokerage accounts without a beneficiary designation or transfer-on-death (TOD) registration may get stuck in probate. Placing a taxable brokerage account into a revocable living trust is one way families keep those assets out of probate court. Retirement accounts like IRAs generally cannot be held inside a trust, so beneficiary designations on those accounts remain the primary transfer mechanism.
