Managing Property and Assets After a Death

One of the most complex aspects of settling an estate is understanding what happens to each type of asset — and how that asset needs to be transferred or distributed. This guide covers the most common categories of property and assets you're likely to encounter after a death in the United States.

This guide covers general US principles. Laws vary by state. Consult a licensed estate attorney or financial advisor for guidance specific to your situation.

How Assets Are Transferred After Death

Assets pass to new owners after death through one of three mechanisms:

1. Operation of law — joint tenancy property and community property pass automatically to the surviving co-owner, regardless of what the will says
2. Beneficiary designation — assets with a named beneficiary (life insurance, retirement accounts, POD/TOD accounts) pass directly to that beneficiary, also regardless of the will
3. Probate — assets owned solely in the deceased's name, without a beneficiary designation, pass through the probate process according to the will (or state intestacy laws if there's no will)

Understanding which category each asset falls into determines what needs to happen next.

Real Estate

Property held in joint tenancy with right of survivorship

Passes automatically to the surviving joint tenant. The survivor typically needs to file an Affidavit of Survivorship with the county recorder along with a certified copy of the death certificate. No probate required.

Property held as tenants in common

The deceased's share passes through their estate (via will or intestacy). It does not automatically pass to the co-owner. Probate may be required for this share.

Property held solely in the deceased's name

Must pass through probate unless there is a valid Transfer-on-Death (TOD) deed recorded on the property (available in most states).

Tax considerations: The stepped-up basis

When you inherit real property, the cost basis for capital gains tax purposes is "stepped up" to the fair market value at the date of death — not the original purchase price. This means if you sell an inherited property shortly after death, you'll typically owe little or no capital gains tax. This is one of the most valuable tax benefits in estate planning. See our guide to taxes after a death for more detail.

Retirement Accounts (IRA, 401k, 403b)

Retirement accounts are among the most important assets to handle correctly — mistakes can have significant tax consequences.

• Named beneficiary: If the deceased named a beneficiary, the account passes directly to them, outside of probate. The beneficiary contacts the financial institution and follows their procedures for inherited accounts.
• Spouse as beneficiary: A surviving spouse has the most options — they can roll the account into their own IRA, open an "inherited IRA," or take a lump-sum distribution (which is fully taxable).
• Non-spouse beneficiary: Under the SECURE Act 2.0, most non-spouse beneficiaries must withdraw the entire account within 10 years. Required Minimum Distributions (RMDs) apply in certain circumstances.
• No named beneficiary: The account passes through the estate, which can force faster distributions and create additional taxes.

Consult a financial advisor before taking any distributions from an inherited retirement account — the rules are complex and the tax consequences are significant.

Life Insurance

Life insurance proceeds pass directly to the named beneficiary and are generally income tax-free. To claim:

1. Locate the policy (check home files, safe deposit box, or contact the state insurance commissioner's office)
2. Contact the insurance company and request a claim form
3. Submit the claim form and a certified copy of the death certificate
4. Most claims are paid within 30–60 days

Investment and Brokerage Accounts

• With a TOD (Transfer on Death) designation: Passes directly to the named beneficiary. Contact the brokerage with the death certificate and claim form.
• Joint account with right of survivorship: Passes to the surviving account holder.
• Sole account without TOD: Must pass through probate. The estate may need to open an estate account to receive the funds.

Bank Accounts

• Joint account: Passes to the surviving account holder.
• POD (Payable on Death) account: Passes directly to the named beneficiary — one of the simplest ways to avoid probate for bank accounts.
• Sole account without POD: Must pass through probate, or via a small estate affidavit if the estate qualifies.

Vehicles

Vehicle title transfer processes vary by state. Generally:

• Joint ownership vehicles pass to the co-owner via a simple title transfer at the DMV
• Solely-owned vehicles must pass through probate or a small estate affidavit process
• Bring the current title, death certificate, and (if probated) Letters Testamentary to your state's DMV

Business Interests

If the deceased owned a business — sole proprietorship, partnership interest, LLC membership, or corporate shares — transferring these interests can be highly complex. Business ownership documents (partnership agreements, operating agreements, buy-sell agreements) typically govern what happens. Consult an attorney with business and estate law experience promptly.

Digital Assets

Digital assets — cryptocurrency, online accounts with stored value, digital files — are an emerging and legally complex area. Key steps:

• Cryptocurrency should be listed in estate inventories; accessing it requires private keys or seed phrases, which may be in a deceased's secure storage
• Some states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), giving executors legal access to digital assets
• Review the deceased's stored passwords and digital estate planning documents

For a complete picture of how different assets interact with the estate administration process, see our complete probate guide. For tax implications of inherited assets, see our tax obligations guide.