Legal Question in Wills and Trusts in Missouri

Re: Payable on death

Certificates of deposit and stocks that indicate the asset is "payable on death" to one or more beneficiaries will be transferred at the owner's death outside of probate. Owners of other assets, like life insurance and IRAs, also typically name beneficiaries. Missouri statutes also allow for beneficiaries to be named on real estate deeds and motor vehicle titles.

Avoiding probate by naming beneficiaries may be attractive, but there are pitfalls. For example, if three beneficiaries are named and one dies before the owner, will each of the two surviving beneficiaries receive one-half, or will each survivor receive one-third and the heirs of the deceased beneficiary receive the other third? You will probably find the answer in the rules and regulations of the bank that issued the CD and the rules of the stock transfer agent.