After you pass on, what you own moves by how it is titled. If it is titled in your name, it goes to Probate Court, even if you have a Living Trust (aka Revocable Trust).
If the asset is in joint names with right of survivorship (like with your spouse), it moves to the survivor after you pass on, regardless of your Trust or Will.
If the asset moves by death beneficiary, such as an IRA, Retirement Account, Annuity, or Life Insurance, it will go to the named death beneficiary after you pass on. That includes the named ex-spouse if you have not changed the death beneficiary (see my May 7 blog, “Redo Your Estate Plan If You Separate or Divorce”).
This is all regardless of what your Trust or Will says.
If the asset is titled in the name of your Living Trust, it bypasses the cost, publicity, and delay of Probate Court.
When your Estate Plan is reviewed, you have to review how your assets are held and who you have named as death beneficiaries! If not, no matter how carefully drafted the Trust or Will is, it will not control that asset when you pass on. That often defeats your intentions in setting up your Estate Plan!
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.