Dear Liza: My grandmother passed away peacefully at 97 in February. I am the executor of her will. She had changed her will, legally, several times depending on who had made her mad at the time. Instead of changing it again, she made me the sole beneficiary on some cd’s and mutual funds. In her will, she left $15k or 15%, whichever was less to my half sister. Do I have to count the funds that were left to me specifically as part of the estate? Your grandmother sounds like she was pretty sassy. The assets that were left to you directly by beneficiary designation DO NOT count as part of the lesser of 15% or $15K gift your grandmother made to your half sister.
Only the assets that are governed by the Will count for that calculation and are considered to be part of the “estate.” The assets left to you by beneficiary designation are separate from the assets that will pass to beneficiaries under your grandmother’s Will. If your grandmother’s Will has to go through probate, the assets that pass by beneficiary designation are not part of the probate estate, either.