What assets do and do not pass under a will?

In Texas, assets that commonly pass under a testator’s will include:

• Real property, both surface rights and mineral interests.

• Bank and brokerage accounts, Certificates of Deposit, stocks, and bonds (depending on whether there is a beneficiary designation).

• One-half of any Individual Retirement Accounts which are considered community property owned by the testator’s spouse.

• Tangible personal property, both titled and untitled.

• Royalties generated from intellectual property.

• Money owed to the testator at the time of his/her death.

Assets that generally do not pass under a will in Texas include:

• Life insurance.

• Some employer provided retirement plans in which the testator is the participant.

• Employer provided retirement plans in which the testator’s spouse is the participant.

• Individual retirement accounts owned solely by the testator.

• Property owned in a trust of which the testator is a beneficiary.

There are instances where some of the assets described above may be passed under a will. One common example occurs when the estate or will executor is named as the beneficiary for one or more of the assets listed.

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