Certain assets that transfer automatically at someone’s death is called a non-probate asset because it does not require a probate. For example, life insurance proceeds, IRA’s, annuities, government bonds, death benefits, brokerage accounts, and payable on death agreements are all assets that will automatically transfer by contract to the named beneficiary.
It is possible to name a trust agreement as the beneficiary of the non-probate asset so that upon the truster’s passing, the trust will receive the proceeds which will then be divided and used according to the terms of the trust agreement.