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Coordinating Non-Probate Assets: Part II
As discussed in my January newsletter, a "non-probate" asset is an asset that is controlled by a beneficiary designation, such as life insurance, retirement accounts, and some bank/investment accounts. Non-probate assets are not controlled by the Will, therefore, it is important that one carefully considers how they set up such beneficiary designations so that their overall plan of action is not negated.
For instance, payable-on-death accounts (sometimes called "POD" accounts) or transfer-on-death accounts (sometimes called "TOD")will be distributed to the named beneficiary.
Additionally, accounts set up by one or more persons as joint tenants with rights of survivorship will pass to the surviving account holder or holders, regardless of how the account holder's Will reads. Not all joint accounts pass to the survivor. When joint accounts are set up as tenants in common, the portion of the account that was owned by the decedent passes under his or her Will.
You may find that most of your estate consists of non-probate property. Therefore, it is extremely important to coordinate the beneficiaries of all these properties to make certain your assets will be distributed as you want when you pass away. For current clients, please let meknow if I may assist you in coordinating any beneficiary information. |
