Detailed Answer
Short answer: Yes — in many cases you still need transfer-on-death (TOD) deeds or payable-on-death (POD) beneficiary designations if you want property to pass to your daughter outside of probate. A will controls only property that passes through probate. Many common assets pass outside probate by title or contract, and those transfers are not affected by the terms of your will.
How probate vs. nonprobate transfers work in Illinois
Under Illinois law, a will governs only assets that are in your individual name at the time of death and that do not have an independent beneficiary or survivorship arrangement. Assets that commonly pass outside probate include:
- Bank accounts or investment accounts with a POD or transfer-on-death (TOD) beneficiary;
- Retirement accounts and IRAs with named beneficiaries;
- Life insurance proceeds with a named beneficiary;
- Property titled jointly with rights of survivorship;
- Real estate transferred by a properly executed beneficiary deed (when available under state law) or placed in a trust.
If one of these nonprobate methods names your daughter as beneficiary, that transfer happens automatically at your death and the asset bypasses probate. If you rely only on a will but an account or deed already names someone else, the beneficiary designation or title controls and the will does not override it.
Example scenario
Imagine you own a house titled solely in your name, a checking account with no beneficiary designation, and a brokerage account with a TOD beneficiary naming your son. You leave a will that gives all property to your daughter. In that situation:
- The house goes through probate and the will can direct the house to your daughter (assuming no other issues).
- The checking account, with no beneficiary, also goes through probate and the will can direct it to your daughter.
- The brokerage account goes directly to the named beneficiary (your son) outside of probate, regardless of what the will says.
What a TOD deed or POD designation will accomplish
Adding a TOD deed for real estate or a POD/TOD beneficiary on accounts ensures those assets transfer to the named person without probate. That can save time and court costs and can keep the transfer private. If your goal is for your daughter to receive particular accounts or property without probate delay, create or update beneficiary designations or use a proper TOD deed or joint title method.
Illinois law to know
The Illinois Probate Act governs wills and probate administration; it explains what property is subject to probate and how probate distributes estate property. See the Illinois Probate Act of 1975 for details: 755 ILCS 5 — Probate Act of 1975 (ILGA). For rules specific to beneficiary-designated transfers or state-specific forms (for example, beneficiary deeds), consult a local attorney or the relevant statute or county recorder guidance for real-property beneficiary instruments.
Common pitfalls
- Out-of-date beneficiary forms: If an account names an ex-spouse or another person, that designation typically controls — even if your will names your daughter instead.
- Joint ownership misunderstandings: Adding someone as joint owner to avoid probate may give that person immediate control and exposure to creditor claims while you are alive.
- Improperly executed TOD/TODI forms: A deed or designation that does not follow Illinois formalities can fail, resulting in a probate requirement.
- Medicaid and creditor concerns: Nonprobate transfers may affect eligibility for public benefits or be subject to repayment or creditor claims in some cases.
What you should do next (practical steps)
- Inventory your assets: list real estate, bank and brokerage accounts, retirement accounts, life insurance policies, and any jointly titled property.
- Check titles and beneficiary designations: verify who is named on each account and on each deed.
- Decide how you want each asset to pass: probate (by will) or nonprobate (POD/TOD/beneficiary/trust/joint title).
- Update beneficiary forms and consider TOD deeds for real property if you want to avoid probate for a home.
- Keep originals and confirmation documents in a safe place and tell your daughter where to find them.
- Consult an Illinois attorney if you own significant assets, have blended-family issues, need tax or Medicaid planning, or if you want to create a trust.
Bottom line: A will is not a substitute for beneficiary designations or TOD/POD arrangements. If your purpose is to make sure property passes to your daughter without probate, you should confirm and, if necessary, add beneficiary designations or use the appropriate transfer-on-death instrument for the specific asset.
Not legal advice: This article provides general information about Illinois law and is not legal advice. For advice tailored to your situation — for example, to draft a valid TOD deed, change beneficiaries correctly, or evaluate tax or Medicaid effects — consult a licensed Illinois attorney.
Helpful Hints
- Always check beneficiary listings on retirement accounts and life insurance every few years and after major life events (marriage, divorce, births).
- For real estate, don’t assume a will controls the property title — check the deed and consider a beneficiary deed or a trust.
- Keep copies of beneficiary forms and deeds together with the will and a short letter explaining where to find originals.
- If you add someone as joint owner to avoid probate, understand they get immediate ownership rights and creditors may reach the property.
- Coordinate your estate plan: make sure wills, beneficiary designations, TOD/POD forms, and any trust documents work together and do not unintentionally conflict.
- If privacy is important, remember that probate is a public process; nonprobate transfers are generally private.
- When in doubt, ask an Illinois lawyer to review your titles, beneficiary forms, and will to prevent surprises at death.