Not all assets must be administered through probate, however. Pulling those assets out of the probate process is fantastic because, the longer the probate process, the more expensive it is, and the more time it takes to distribute the remaining assets (those listed in the will).
Several types of assets have paperwork that allow for a designated beneficiary. When the owner dies, the asset passes directly and automatically to that beneficiary. Because a purpose of probate is to determine who gets an asset, an asset with a designated beneficiary is not subject to probate.
Another way to designate a beneficiary is to own property jointly, meaning that both names appear on the title. The legal term is "joint tenancy"; you'll also see "JT w ROS" which means "joint tenancy with right of survivorship". If one dies, the other becomes the sole owner of the property or the account and can manage or dispose of it however she wishes.
Here are some assets that allow for a designated beneficiary or joint tenancy. Remember that, if no beneficiary is designated, then the asset must go through probate.
1) Life insurance policies;
2) Bank accounts (the provision is often called POD or "pay on death");
3) Real estate;
4) Annuities;
5) Small businesses;
6) IRAs;
7) 401Ks (a spouse is, by federal law, entitled to be the 401K recipient, but he or she can waive that right, in writing, and another beneficiary can be chosen).
