If you have recently lost a loved one or are planning your own estate, you may have heard that the probate process can be time-consuming, expensive, and public. However, many Wisconsin residents are unaware that a significant portion of an individual’s assets can transfer directly to their heirs without going through court proceedings. Knowing which assets bypass probate allows you to plan more effectively and protect your loved ones from unnecessary delays.
1. Assets Held in a Revocable Living Trust
A revocable living trust is a powerful tool to avoid probate in Wisconsin. By transferring ownership of your assets, such as real estate, bank accounts and investments, into a trust when you are still alive, they are no longer part of your estate when you die. Instead, these assets pass directly to named beneficiaries according to the terms of the trust privately and without involving a judge.
A living trust is especially beneficial if you have property in multiple states as it prevents loved ones from opening separate probate proceedings in each state after death. This saves time, money and emotional stress for families.
2. Jointly Owned Property With Right of Survivorship
Property held as joint tenancy or survivorship marital property automatically passes to the surviving owner upon death, without the need for a court order. Wisconsin, as a state that recognizes marital property, has the Marital Property Act (Wis. Stat. Ch. 766) that applies to the following:
A family home that is held jointly by both spouses
Bank or investment accounts that have a co-owner listed as the joint account holder
Any titled property that is specifically designated as “survivorship property”
3. Payable-on-Death (POD) Bank Accounts
Wisconsin law, under Wis. Stat. Ch. 705, allows account holders to designate a beneficiary directly on their checking, savings, or certificate of deposit accounts. When the account holder passes away, the funds are transferred immediately to the named individual – no probate is required. Many Wisconsin banks offer “payable on death” (POD) designations as a standard feature of their accounts, making it one of the easiest ways to ensure that liquid assets are kept out of a probate estate.
4. Transfer-on-Death (TOD) Deeds for Real Estate
Wisconsin is one of the states that allows for transfer-on-death (TOD) deeds for real estate. Under Wisconsin Statute § 705.15, property owners can record a TOD deed with the county register of deeds, naming a beneficiary to receive their property upon death. This deed has no effect while the owner is alive – they retain full control over the property and can sell, refinance or revoke the designation at any time.
Upon death, ownership of the property automatically transfers to the designated beneficiary, bypassing the need for probate court proceedings. However, if the owner is married, their spouse typically needs to sign the TOD deed even if their name is not listed on the original title document.
5. Life Insurance With a Named Beneficiary
Life insurance proceeds are paid directly to the designated beneficiary on the policy and are not subject to probate as long as the beneficiary is not listed as “the estate.” This is an important point to keep in mind when planning. If your policy names the estate as beneficiary, the proceeds will go through probate, which can slow down and complicate the process, losing speed and privacy, making life insurance a less valuable estate planning tool.
Therefore, it’s always a good idea to review and update beneficiary designations after significant life events such as marriage, divorce or the birth of a child to ensure that your wishes are accurately reflected in your insurance policy.
6. Retirement Accounts With Beneficiary Designations
IRAs, 401(k) plans and 403(b) accounts, as well as other retirement assets, can be transferred outside the probate process if the named beneficiary is listed with the plan administrator when the owner dies. Federal law generally governs these employer-sponsored accounts, but Wisconsin estate laws govern the outcome: the funds are transferred directly and immediately to the named beneficiaries. Like with life insurance policies, naming an estate as the beneficiary, rather than an individual, eliminates the advantage of avoiding probate.
7. Securities Registered in Beneficiary (TOD) Form
Stocks, bonds, and other investment accounts can be set up in a “transfer-on-death” (TOD) beneficiary form, according to Wisconsin Statute § 705.22. This means that the accounts can pass directly to the designated individuals or entities upon the account holder’s death, without the need for court involvement. If you have any investment accounts, you should contact your brokerage or financial institution to verify whether they currently have an active TOD designation for your accounts.
A Note on Small Estates
Even when assets technically go through a deceased person’s individual estate, Wisconsin has a simplified process for smaller cases. Under Wis. Stat. § 867.03, heirs can use a transfer-by-affidavit process to collect assets without going through a full court hearing if the total value of the property is not more than $50,000. This limit applies as of 2026 and can greatly reduce the time and costs involved in settling a small estate.
Plan Ahead With Collins Law Firm
At Collins Law Firm, we serve the communities of Wauwatosa and Pewaukee in the greater Milwaukee area. We help families create estate plans that reflect their unique values, rather than using generic documents. Whether you’re considering a living trust, a transfer-on-death deed, or a comprehensive plan, our team will work closely with you every step of the way to ensure that your wishes are respected and your loved ones’ interests are protected.
Contact Collins Law Firm today to schedule a consultation and take the first step towards peace of mind.