Why Primary Succession Matters in Estate Planning
Estate planning is about more than drafting a will—it's about securing your legacy. One of the most important but often overlooked components of this process is primary succession. This concept refers to the orderly transfer of assets to named beneficiaries or heirs after death, ensuring that your wishes are fulfilled without unnecessary legal hurdles or family disputes.
Whether you’re passing on a trust fund, managing complex inheritance matters, or building your estate plan from scratch, understanding how primary succession works will help protect what you’ve worked so hard to build.
What Is Primary Succession?
Primary succession refers to the first line of asset distribution according to your estate planning documents or beneficiary designations. Think of it as the primary pathway your assets follow after your death. It often includes:
- Beneficiary designations on IRAs, 401(k)s, and life insurance policies
- Joint ownership with rights of survivorship
- Revocable living trusts with named beneficiaries
- Payable-on-death (POD) or transfer-on-death (TOD) accounts
These tools allow your assets to transfer directly to your heirs without going through probate—making the process faster, less costly, and more private.
How Primary Succession Differs From Probate or Contingent Succession
Probate vs. Primary Succession
Probate is a court-supervised process to distribute assets that don’t have direct succession paths. Unlike primary succession, probate can take months or even years, costing your heirs time, money, and stress. According to the National Association of Estate Planners & Councils (NAEPC), probate costs range from 2% to 7% of your total estate value.
Contingent Succession
If a primary beneficiary is unable or unwilling to receive their inheritance, assets pass to a contingent beneficiary—your backup plan. This makes proper succession planning crucial. You’ll want to update designations regularly to prevent unwanted distributions or legal complications.
Estate Planning Tools That Enable Primary Succession
Here’s a breakdown of estate planning components that support primary succession and how they integrate into an overall inheritance strategy.
1. Wills
A will outlines your asset distribution and nominates guardians for minors, but it doesn’t avoid probate. It’s best used in conjunction with other tools.
2. Revocable Living Trusts
Trusts are central to bypassing probate and ensuring smooth succession. Assets held in a trust pass directly to beneficiaries without court involvement.
3. Beneficiary Designations
Designate beneficiaries on all financial accounts to take advantage of primary succession. This includes IRAs, life insurance, HSAs, and more. Use our Estate Planning Checklist to keep track.
4. Trust Funds for Minors
Using a trust fund allows you to control how and when younger beneficiaries receive their inheritance. This protects the assets while ensuring they are used responsibly.
Common Mistakes That Undermine Primary Succession
- Not updating beneficiaries after major life changes like marriage, divorce, or death
- Relying solely on a will and skipping trusts or designations
- Overlooking contingent beneficiaries
- Inconsistent asset titling, which can nullify succession planning efforts
According to a Fidelity study, over 30% of Americans have outdated or conflicting estate documents. Avoid this pitfall with periodic reviews and guidance from a qualified estate planning attorney.
Real-World Example: Avoiding Probate Through Primary Succession
Consider Sarah, a widow with two adult children. She:
- Placed her home and investments in a revocable trust
- Named her children as primary beneficiaries on her IRA and life insurance
- Created TOD designations on brokerage accounts
When Sarah passed, her estate bypassed probate entirely. Her children received their inheritances within weeks, free from court fees or delays.
Incorporating Primary Succession into a Larger Estate Strategy
Primary succession is just one piece of a larger plan that should include:
- Tax planning to reduce estate or inheritance taxes
- IRA management, especially for inherited IRAs
- Long-term care and disability planning
- Integration with business interests or real estate investment trusts (REITs) if applicable
Use tools like a lottery annuity calculator or mortgage calculator to evaluate the long-term impact of assets that will eventually transfer to heirs. These calculators help project estate values and identify tax liabilities.
Take Action to Secure Your Legacy
Primary succession ensures your assets are transferred according to your wishes, quickly and efficiently. Whether through trusts, IRA designations, or TOD accounts, these mechanisms can streamline the inheritance process for your loved ones.
If you’re unsure where to begin—or need help updating an existing plan—schedule a call with the BetterWealth team today. Our estate planning experts can guide you through each step, ensuring that your plan reflects your values and your legacy.
