If a person is designated a beneficiary on a mutual fund account, do the proceeds go directly to the beneficiary or do they go to the estate to be probated?

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If a person is designated a beneficiary on a mutual fund account, do the proceeds go directly to the beneficiary or do they go to the estate to be probated?

Asked on October 14, 2014 under Estate Planning, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

I am so sorry for your loss.  Generally speaking, a mutual fund is considered a non-probate asset even in the state of Texas and generally help you avoid Probate.  But Texas has some different rules about designations on beneficiary forms and for that reason I would strongly suggest that you seek legal help to determine if the form was properly filled out.  Good luck.


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