Different Flavors of Transferring Your Money and Property Outside of Probate
It is summertime, and the living is easy.
Maybe you spent the day out on the boat, at the beach, or at home relaxing in your most comfortable lounge chair. As the sun sets, you have a hankering for a sweet treat and decide to get some ice cream—a no-brainer in July, National Ice Cream Month.
Do you want to eat what is in the freezer or go out? Should you order online or decide at the window? Cone or cup? Dairy or nondairy? What flavor are you craving?
You are facing what is known as the “ice cream dilemma,” which has become a metaphor for the difficulty of decision-making when there are nearly unlimited options.¹ This dilemma could help explain why only around one in three American adults has an estate plan²: They do not know where to start and are overwhelmed by the decision-making process.
So perhaps you start small, with a relatively easy decision—such as finishing the ice cream bars you've already bought. Or in the case of your estate plan, choosing how to transfer some of your assets (your accounts, money, and property) outside of probate.
Why Avoid Probate? The Cherry on Top
You've put together the basics of your estate plan, but something seems to be missing—that last little sweet detail that ties it all together and crowns your efforts, turning a few simple scoops into something special, satisfying, and totally shareworthy.
Skipping probate is the cherry on top of your estate plan. It avoids the court-supervised procedure of validating a will, settling debts, and distributing a person's assets according to their estate plan (or, if no estate plan exists, according to state law). Probate can drag on for 6 to 18 months depending on the jurisdiction, tying up assets when families need them most. It also carries administrative and court fees (in some states up to 3–7 percent of your estate's value), melting away wealth like ice cream in the heat. Another downside? It's public—meaning your personal and financial info may become part of the public record.
Unlike the 31 flavors at Baskin-Robbins, nonprobate transfers come in three basic varieties, offering faster, more private ways to pass on your assets.
Joint Ownership: A Double Scoop
Assets held jointly with rights of survivorship automatically pass to the surviving owner upon death, bypassing probate.
Joint ownership is like a double scoop on a single cone—great when things hold up, but risky if one scoop melts. It's sweet when both parties are aligned, but can get messy fast.
Pros:
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Simple setup. Usually just requires updating a deed or account at your bank or institution. It's quick, low-cost, and paperwork-light.
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Incapacity flexibility. If one owner becomes incapacitated, the other retains full control without needing court approval.
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Automatic transfer. On death, the surviving owner instantly inherits the asset—no probate required.
Cons:
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Shared control. All owners must agree on major decisions, which can become a headache if someone's incapacitated or uncooperative.
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Shared liabilities. The asset is exposed to the financial risks of both owners—like creditors, lawsuits, or divorces.
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Tax complications. Adding a joint owner can be treated as a taxable gift if the value exceeds $19,000 in 2025. It may also affect capital gains taxes down the line.
Designations: Estate Planning Sprinkles
Naming a beneficiary or using a transfer-on-death (TOD) or payable-on-death (POD) designation is a simple, straightforward way to transfer assets. These can be used for brokerage accounts, bank accounts, insurance policies, and even real estate in some states.
They're like sprinkles on an estate plan—easy to add, but easy to mess up if you're not paying attention.
Pros:
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Easy to set up. Most institutions allow you to fill out a form—or even update it online.
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Fast access. Beneficiaries typically just need a death certificate to claim the asset.
Cons:
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No help during incapacity. These designations only kick in when you pass away. They don't help if you're still alive but unable to manage things.
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No protection. The beneficiary receives the asset outright—no safeguards against creditors, divorcing spouses, or poor financial decisions.
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No flexibility. There's no way to set conditions or stagger payments. You can't tailor the distribution like you can with a trust.
Trusts: A Custom Sundae
Trusts are the custom-made sundaes of estate planning—layered, flexible, and totally tailored to you.
Pros:
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Skip probate, keep privacy. Assets in the trust bypass court and remain private.
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Built-in incapacity planning. A successor trustee can step in immediately if you become incapacitated.
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Total customization. Set rules for distributions, protect assets for future generations, and care for beneficiaries with special needs or spending issues.
Cons:
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You have to retitle your assets. The trust only works if your assets are properly titled or directed into the trust.
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Higher cost. Trusts are more expensive to create and maintain—but you're getting the full sundae, not just a scoop.
Don't Let Your Estate Planning Goals Melt Away
How you eat your ice cream—and how you set up your estate plan—can say a lot about your personality and what drives you.
Are you a biter (impulsive and confident), a nibbler (cautious and thoughtful), a licker (relaxed and methodical), or a guzzler (enthusiastic and impatient)?³
However you approach estate planning, don't let the options overwhelm you or delay your decisions.
At Sheil Law Firm, we're here to help you create a plan that fits your life, your family, and your legacy—with just the right amount of sweetness, structure, and peace of mind.
Ready to create or update your estate plan?
