Common Estate Planning Questions: How to Handle Your Assets

When it comes to estate planning, many questions arise about managing and passing on assets. Understanding account ownership, beneficiary designations, and key estate planning documents is critical to ensuring your family is protected and your wishes are carried out. In this comprehensive guide, I’ll answer the most common questions I hear, providing clarity and practical steps to handle your assets effectively.

What’s the Difference Between Joint Ownership and Transfer-on-Death (TOD) Designation?

Joint ownership means that both parties have full access to and ownership of an account or property during their lifetimes. Upon one owner's death, the surviving owner automatically gains full ownership. While this arrangement can be convenient, it carries risks—such as the account being exposed to the creditors or legal judgments of either owner.

In contrast, TOD or Payable-on-Death (POD) designations allow sole control during your lifetime, transferring assets to your designated beneficiary upon your death. This approach avoids probate and limits access while you're alive. However, keep in mind that a TOD/POD designation transfers assets directly to the beneficiary without any safeguards, which can create family conflict or result in fiscal mismanagement.

If I Hold My Property Jointly or Use TOD/POD Designations, Do I Still Need a Trust?

Joint ownership and TOD/POD designations can bypass probate but may create unintended problems. Jointly owned property could be at risk from creditors of either owner, and TOD/POD designations only address what happens after death—not during incapacity.

A trust, on the other hand, provides a comprehensive solution. It allows you to privately manage your assets and ensures they are distributed according to your wishes, regardless of life’s uncertainties. With a properly funded trust, your chosen trustee can seamlessly manage your assets, bypassing the delays and public nature of probate.

What Happens to Retirement Accounts and Life Insurance Policies After Death?

These accounts generally pass directly to named beneficiaries, avoiding probate. However, keeping beneficiary designations up to date is critical. Outdated beneficiaries—such as an ex-spouse or deceased individual—can lead to unintended outcomes. If no beneficiary is listed, the assets will go through probate, potentially creating unnecessary delays and expenses for your loved ones.

Be especially cautious about naming minors as beneficiaries, as this will require court supervision of the assets until the minor reaches the age of majority, which varies by state.

What’s the Difference Between a Will, Living Trust, and Dying Intestate?

If you die without a will or trust, the state’s default laws—known as intestacy laws—determine how your assets are distributed. This often leads to probate, a lengthy and public court process that can cause significant stress for your family.

A will allows you to name guardians for minor children and specify how your assets should be distributed. However, a will still requires probate, and its contents become public record.

A living trust avoids probate altogether. It allows you to manage your assets privately during your lifetime and ensures they are distributed efficiently and according to your wishes after your death.

Is Probate Always Required When Someone Dies?

Probate is generally required for assets titled in your name alone without a beneficiary designation. Exceptions include jointly owned property, assets with named beneficiaries, and assets held in a trust. Proper planning can prevent probate and the associated time, cost, and stress for your family.

How Often Should I Review My Asset Inventory and Beneficiary Designations?

Regular updates to your asset inventory and account designations are essential, particularly after major life events such as:

• Marriage or divorce
• Birth or adoption of a child
• Death of a beneficiary
• Purchase or sale of significant assets
• Moving to a new state
• Starting a business
• Retirement

When you work with me, I’ll help you keep your plan current through regular reviews, ensuring no asset is overlooked or improperly titled.

What’s the Best Way to Organize and Store Asset Information?

Develop a clear and secure system for documenting your assets, making it easy for loved ones to access if something happens to you. Sensitive information, like passwords, should not be included in your will, as it becomes public record. Instead, store such details securely and share access instructions with trusted individuals.

How Can You Minimize Stress for Your Family?

The best way to reduce stress is to create a comprehensive Life & Legacy Plan that:

• Clarifies what you own and how it should be distributed.
• Names trusted individuals to manage your affairs.
• Ensures your assets are properly titled and aligned with your goals.

A well-executed plan spares your family the difficulties of probate, eliminates confusion, and provides peace of mind for everyone involved.

How We Help

As your Personal Family Lawyer® Firm, we guide you through the process of creating a comprehensive estate plan tailored to your unique needs. From drafting legal documents to maintaining an updated asset inventory, our Life & Legacy Planning process ensures your family is protected and your wishes are honored.

Let’s work together to create a plan that brings you peace of mind and protects your loved ones. Click below to schedule a complimentary consultation:
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This article is part of our commitment to helping families make informed decisions about life and death. Let us support you in planning for the people you love

This article is a service of Dolev Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

Disclaimer

For personalized legal advice tailored to your specific circumstances, please consult with an attorney. Laws vary by jurisdiction, and the examples provided may not apply to your situation. Reading this blog does not establish an attorney-client relationship.