February 25, 2020
Tagged As: Wealth Management
Often times, how an asset is titled will determine who will receive that particular asset upon death. It is important for you to review with your attorney how your accounts or assets should be titled.
Review these five ways that your assets or accounts can be titled, and if you have any questions, feel free to reach out to one of our estate planning experts.
1. Individual Name:
Assets that are in your name will become part of your estate and will pass according to your will. Your executor will take possession of the assets that are in your individual name and distribute them.
2. Joint Tenants with Rights of Survivorship:
Each joint owner has access to 100% of the assets during their lives, and the assets will automatically pass to the surviving joint owner upon the death of the other. This type of ownership works best for spouses.
3. Tenants in Common:
Each owner owns a fractional interest in the asset or account. If there are two owners they would each own an undivided 50% interest in the asset. When the first joint owner dies, their 50% interest will pass to their estate. The other 50% interest will remain owned by the surviving joint owner.
4. Revocable Living Trust:
Assets in your revocable living trust will remain in your trust and pass according to the terms of your trust agreement. Your successor trustee will take control of these assets after your death.
5. Payable or Transferable on Death:
Assets with a payable or transferable on death designation will pass automatically to the designated beneficiary at your death. Your executor or successor trustee will not take control of these assets and they will not pass according to your Will or revocable trust agreement.
It is important that you review with your attorney how your assets are titled. You should only make changes with the approval of your attorney, as they may affect your estate plan. If you have any questions or are interested in learning more about titling assets and estate planning, you can give us a call at 1-800-899-8858.
Some trust products and IRA contributions/balances are not a deposit, not FDIC insured by any federal government agency, not guaranteed by the bank, and may go down in value.