Non-Probate Transfers

How Certain Assets Pass Outside Formal Probate Under Texas Law

While many assets must go through probate before they can be inherited, Texas law recognizes several non-probate transfers—assets that transfer automatically by contract, title, or beneficiary designation. These assets still play a major role in the probate process because they must be identified, valued, and coordinated with the estate’s overall plan.

At McCulloch & Miller, PLLC, we help families across Houston, Dallas, Austin, and throughout Texas understand how non-probate assets interact with probate estates and ensure that both types of property are handled properly during administration.

What Are Non-Probate Assets?

Non-probate assets are those that pass directly to a named beneficiary or surviving owner at death. Because ownership transfers outside the probate estate, the executor usually does not distribute them. However, the executor still must account for them and identify how they affect the estate.

Common non-probate assets include:

• Life insurance policies with named beneficiaries
• Retirement accounts (IRAs, 401(k)s) with beneficiary designations
• Payable-on-Death (POD) bank accounts
• Transfer-on-Death (TOD) brokerage accounts
• Joint accounts with right of survivorship
• Property held in a trust
• Certain contractual death benefits

Even though these assets pass outside probate, they can affect creditor claims, tax filings, and family distributions. We help executors evaluate these interactions as part of the overall estate.

How the Executor Handles Non-Probate Property

The executor or administrator must still:

• Identify all non-probate assets
• Notify beneficiaries as appropriate
• Coordinate with financial institutions
• Determine whether any claims may attach to certain transfers
• Address conflicts between beneficiary designations and the will

In many estates, non-probate property comprises a significant part of the decedent’s wealth. Failing to account for it can create confusion and inequity among heirs.

McCulloch & Miller, PLLC works with families to ensure these assets are documented and properly integrated into the estate administration.

When Non-Probate Transfers Create Complications

Although non-probate transfers are straightforward in many cases, they can create legal and practical issues when:

• Beneficiary designations were never updated
• A beneficiary predeceased the decedent
• An account lists an ex-spouse
• Community property rights impact the asset
• Multiple beneficiaries disagree on interpretation
• Trust terms conflict with the beneficiary designation

In these situations, legal guidance is critical. Our firm analyzes the Texas Estates Code, the underlying contract, and applicable case law to determine who is entitled to receive the asset.

Non-Probate Transfers Do Not Replace Probate

A critical point Texas families must understand is that having certain non-probate assets does not eliminate the need for probate.

For example, probate may still be required if:

• The decedent owned real estate in their name alone
• The estate must address creditor claims
• A will must be admitted to probate
• Heirship must be determined
• Administration is needed to manage or sell assets

Even in estates with significant non-probate transfers, probate often plays a central role in ensuring all legal requirements are met.

Coordinating Probate and Non-Probate Assets

Effective estate administration requires understanding how both types of assets function together. We help executors:

• Develop a complete inventory
• Identify assets actually passing through the estate
• Determine whether a full administration is required
• Ensure compliance with notice requirements
• Avoid conflicts among beneficiaries

Clear coordination reduces the risk of disputes and ensures the estate is handled properly under Texas law.

Why Work With McCulloch & Miller, PLLC

Non-probate transfers are governed by contract law, title law, and the Texas Estates Code. Our firm brings all three together to ensure:

• Beneficiary transfers are honored
• Probate filings account for all necessary property
• Title companies and financial institutions accept documentation
• The estate is administered efficiently and lawfully

Families trust us to guide them through complex probate interactions with clarity and precision.

Speak With a Texas Probate Attorney About Non-Probate Transfers

If you need help understanding how non-probate assets interact with probate requirements, we are here to assist. Call McCulloch & Miller, PLLC at (713) 333-8900 to schedule a consultation with an experienced Texas probate attorney.