Are CD and annuities left to beneficiaries considered part of the estate when it is divided? 21 Answers as of July 25, 2013

My dad passed away leaving a majority of his assets to his four children in cd's and annuities. His will states that the residue of his estate be divided in equal shares to his wife and four children. Are the cd and annuities he left only to his children considered part of the estate to be divided equally?

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Law Offices of Frances Headley | Frances Headley
If the CD's and annuities have valid beneficiary designations then they are not part of the estate and the will does not control what happens to them.
Answer Applies to: California
Replied: 7/25/2013
Law Office of Jacob R. Lauser
Law Office of Jacob R. Lauser | Jacob R. Lauser
This is a complicated probate question that is best left to an experience Probate attorney. I suggest you contact one immediately for more advice. Good Luck!
Answer Applies to: Pennsylvania
Replied: 7/25/2013
Minor, Bandonis and Haggerty, P.C.
Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
They're part of the taxable estate; they're part of the augmented estate for purposes of the spousal elective share; they're part of the estate for purposes of Medicaid estate recovery. But, in general, no. If accounts are left with "payable on death" beneficiaries, they are not part of the probate estate. Many people screw up their estate plan by designating beneficiaries for their cash accounts unevenly, for example, leaving this CD to that child and the other CD to this child. Then you spend one CD, and forget to change the designation of the other now one child takes his CD and half of the probate estate, and the other child is just short by the amount of the CD.
Answer Applies to: Oregon
Replied: 7/25/2013
Stephens Gourley & Bywater | David A. Stephens
Generally no, but it depends on the language of the will.
Answer Applies to: Nevada
Replied: 7/25/2013
Durkin Law, P.C.
Durkin Law, P.C. | Roger Durkin
Yes, unless the will specifically bequests the CDs to the children.
Answer Applies to: Massachusetts
Replied: 7/25/2013
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    No. Those assets pass to the named beneficiaries outside of the estate to be administered by will or trust.
    Answer Applies to: California
    Replied: 7/25/2013
    Ronald Main & Associates | Tracian M. Laignel
    The residue is what is left over. So if the CD's and annuities are specifically bequeathed given to someone in particular, it is not residue or left over.
    Answer Applies to: Oklahoma
    Replied: 7/25/2013
    Kokish & Goldmanis, P.C.
    Kokish & Goldmanis, P.C. | Bernard H. Greenberg
    Any CD's or annuities with beneficiary designations pass outside the estate and are not part of the residue mentioned in the Will. However, they may be subject to state laws on a surviving spouse's marital share. For ore specific information, contact a lawyer specializing in estate administration.
    Answer Applies to: Colorado
    Replied: 7/25/2013
    Charles M. Schiff, Attorney at Law
    Charles M. Schiff, Attorney at Law | Charles M. Schiff
    No, assuming that he left CD's and annuities by beneficiary designation, those assets are not considered part of the residual estate for the purpose of distribution under the terms of the Will. Those assets would however be considered part of the "estate passing by virtue of decedent's death" for the purpose of computing estate tax liability (State or Federal). Hopefully the Will does not rule out apportionment of taxes among all assets passing upon decedent's death.
    Answer Applies to: Minnesota
    Replied: 7/25/2013
    Reger Rizzo & Darnall LLP | Kathleen DeLacy
    If beneficiaries are on the CD's, then no, they are not part of the estate.
    Answer Applies to: Delaware
    Replied: 7/25/2013
    Vandervoort, Christ & Fisher, P.C. | James E. Reed
    No. Assets that are titled jointly that go to the surviving joint tenant on death and assets on which a beneficiary are named go automatically to the surviving joint tenant or beneficiary and are not part of the probate estate.
    Answer Applies to: Michigan
    Replied: 7/25/2013
    Law Office of Pamela Braynon | Pamela Y. Braynon
    Because the CDs and annuities have beneficiaries the they will not become apart of the estate. The "rest and residue" clause is there to account for anything that may have been overlooked by the testator (person writing the will) inadvertently or obtained after the will was written. Anything that have designated beneficiaries will not be a part of the estate.
    Answer Applies to: Florida
    Replied: 7/25/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Dara Goldsmith
    Not if the cd and annuities have beneficiaries.
    Answer Applies to: Nevada
    Replied: 7/25/2013
    Frederick & Frederick PLC | James P Frederick
    No. Assets with beneficiary designations pass outside of probate and are not considered part of the estate. They are also not subject to the terms of the Will.
    Answer Applies to: Michigan
    Replied: 7/25/2013
    Neal M. Rimer, Esquire
    Neal M. Rimer, Esquire | Neal M. Rimer
    CD's would generally be a part of the estate unless there was a specific bequest of the CD to a particular beneficiary. Generally, a CD contract does not have a pay on death provision to allow for the CD to bypass probate. If the CD is given to specified persons, that would have to be specified in his Will. The residue is that which is left over after specific gifts are made. The annuity is a contract and is generally given to a beneficiary named in the "beneficiary designation" filed with the payor of the annuity. It is possible, but not likely, that the beneficiary designation filed with the annuity named the "estate" as the beneficiary, in which case the annuity would probably then be a part of the residue. It is also possible that the beneficiary designation named "my children" as the beneficiary, in which case all the children would get an equal share of that annuity. Should you have any questions or wish to discuss this matter further, please feel free to contact me.
    Answer Applies to: California
    Replied: 7/25/2013
    Law Office of Patricia A. Simmons
    Law Office of Patricia A. Simmons | Patrica A Simmons
    If a beneficiary receives an asset, such as a stock or cd, that asset is not part of the estate and is paid directly to the beneficiary.
    Answer Applies to: California
    Replied: 7/25/2013
    Sebby Law Office
    Sebby Law Office | Jayne Sebby
    Usually, financial instruments payable on death to named beneficiaries are not considered part of the estate.
    Answer Applies to: Nebraska
    Replied: 7/25/2013
    James Law Group
    James Law Group | Christine James
    Only if there is no designated beneficiary. If there is a beneficiary, the beneficiaries get the asset and the value is not calculated as part of the estate.
    Answer Applies to: California
    Replied: 7/25/2013
    Gates' Law, PLLC | Thomas E. Gates
    If an asset names beneficiaries, they alone own the asset. All else of the estate is divided per the will.
    Answer Applies to: Washington
    Replied: 7/25/2013
    James T. Weiner & Associates, P.C.
    James T. Weiner & Associates, P.C. | James T. Weiner
    No. CD and annuities pass outside of the probate estate.
    Answer Applies to: Michigan
    Replied: 7/25/2013
    Attorney At Law | James G. Maguire
    The annuities are like life insurance, and are paid to the beneficiaries named in the annuities. Likewise the CD's, if there are beneficiaries named. If not, they become part of the estate.
    Answer Applies to: Louisiana
    Replied: 7/25/2013
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