Investment Accounts

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.