-
Avoiding Probate: What Works and What Doesn’t
Many people want to avoid probate, but there is a lot of confusion about what actually works. Certain tools can help avoid probate, such as beneficiary designations, transfer-on-death accounts, payable-on-death designations, and properly funded trusts. When used correctly, these tools allow assets to pass to the intended beneficiaries without probate. However, some common shortcuts do…
-
Using a Revocable Trust for a Minor Child
For most families, the best option to leave assets to minor children is to use a revocable living trust. Like a testamentary trust, it lets you choose who will manage money for your children and how they receive it. A revocable living trust comes into existence when you create it, so it can govern how…
-
Establishing Ownership Structure
Understanding your options for joint ownership is important. Once selected, the ownership structure needs to be reflected on the property deed. Under joint tenancy, each co-owner has an equal and undivided interest in the property. Upon the death of one owner, their share automatically passes to the surviving owner. Under tenants in common, each co-owner…
-
How to Change a Beneficiary Designation
Updating beneficiaries is straightforward, but the actual process can depend on the type of account. Many accounts can be checked and changed online. Some accounts require filling out paperwork. A spouse’s written consent may be required to name someone else as beneficiary. A beneficiary change could require a sign-off from a plan administrator. When naming…
-
Review Beneficiary Designations Regularly
A beneficiary designation supersedes a will or trust about how to distribute an asset. Many people make the mistake of assuming the opposite: that their will or trust overrides beneficiary designation forms. A beneficiary form that is not up to date can result in assets not passing to the correct beneficiaries. An estate plan should…
-
Adult Child on the Home Title to Avoid Probate
Adding an adult child to the house’s deed to avoid probate might be a desirable goal, but it should be weighed alongside other potential outcomes, such as capital gains tax if the property is later sold and potential creditor claims of the child’s creditors. If parents are trying to avoid probate, they may consider creating…
-
Adding an Adult Child to the Home Title
An adult child can be added to the house’s deed as a partial owner. If a house is jointly owned by a parent and an adult child, then when the parent dies, the house passes automatically to the adult child outside of probate. With a tenants-in-common ownership structure, the parent’s share of the house becomes…
-
One Beneficiary Inherits a Mortgaged Property
A person can leave a property to a beneficiary under the terms of a will or trust, or with the use of a transfer-on-death deed or Lady Bird deed (in those states that permit these deeds to avoid probate). When the home transfers, a mortgage or loan secured by the home also transfers. The person…
-
Pitfalls of POD and TOD Designations
Probate avoidance is the main appeal of payable-on-death (POD) and transfer-on-death (TOD) designations, but this should be weighed against some pitfalls. A POD or TOD does not help if the owner becomes incapacitated. Backup beneficiaries might not be able to be named if a beneficiary predeceases. POD and TOD accounts are outside the rest of…
-
Benefits of POD and TOD Designations
There are numerous benefits of payable-on-death (POD) and transfer-on-death (TOD) designations. Setup is straightforward and there is generally no cost. Beneficiaries receive the funds without having to wait for probate to conclude. Typically, a beneficiary only needs to provide the death certificate and identification to the account-holding institution. A bank account with multiple unique beneficiaries…
Category: Probate Avoidance
Eckert & Krautkramer, LLC
Protecting Assets, Preserving Dignity, Ensuring Peace of Mind
Newsletter
Subscribe to our periodic email newsletter – full of legal updates and best practices.
By submitting this form, you are consenting to receive marketing emails from: EK Law, 630 N. 4th St., Wausau, WI, 54403, http://www.eklawwi.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact