Be the Constant Worrier, and Your Accounts Will Be Protected.

Account ownership and the dreaded word Probate have a meaningful impact on each other. It is imperative that any accounts that you own either do NOT have just your name on them, or have designated beneficiaries on death. Otherwise, any accounts that are only in your name end up as a “probatable” asset.

As we all know- probate is a costly, public, and time-consuming court process that many people prefer to avoid. Therefore, it is important that you review your accounts and beneficiary designations to be sure that the death of your loved one has not compromised your previously established plan.

If you properly designate beneficiaries then the proceeds of those accounts will be distributed at your death without probate. However, you have to be diligent in making sure that your designee has not predeceased you, because if they have then the default rules of the policy, institution, or applicable state law.

In some cases, you may have added another person to an account or a property’s title so that it is owned jointly with rights of survivorship. This form of ownership means that at the death of the first owner, the surviving owner automatically owns the entire account or property without going through probate. However, it should be of note that if you are utilizing this strategy and you are now the sole survivor, we should discuss further planning to avoid probate for your individually owned assets.

If your estate plan includes a revocable living trust (RLT), you should have transferred ownership of most of your accounts and property (with some exceptions, such as retirement accounts) from yourself as an individual to the RLT. Review your accounts and property and make sure that your RLT is the owner of the accounts and property discussed above.