The two most effective alternatives for transferring assets are: (i) titling them as “Joint Tenants with Rights of Survivorship” and (ii) designating beneficiaries on financial accounts. In many cases, especially between spouses, an entire estate can be transferred to the other simply by using these two methods.
However, since these options may not be suitable in all situations, it’s still a good idea to have a will in place. Joint Tenancy with Rights of Survivorship is a form of property ownership shared between two or more people. When one joint tenant dies, the title to the property automatically transfers to the surviving joint tenants.
This type of ownership is most commonly seen between spouses concerning their home ownership, but it can also apply to other beneficiaries, such as children. It is important to consider the potential tax implications of transferring property to children. Additionally, the relationships between potential beneficiaries, as well as with the current owner, should also be taken into account.
If you have more than one child, and you add all of them to the title of your home, you are making them joint property owners. They will all need to agree on if and when to sell the property, if ever, and at what price. Also, bear in mind that, during your life, whomever you add to the title to the property is a joint owner and will have rights to control the sale and disposition of that property, as well as rights to the proceeds of the sale.
Disputes between co-owners of property can be expensive if they end up in court. Utilizing beneficiary designations is also a critical practice. If you have ever purchased life insurance, you are probably familiar with the concept. With life insurance, when you die, the proceeds from that policy are paid to the beneficiaries you designated with your life insurance provider.
Similarly, you can designate beneficiaries for many other financial accounts, including bank and checking accounts, annuities, IRAs, 401Ks, and brokerage accounts. Bear in mind, however, that your beneficiary designations will control the ultimate distribution of that asset, regardless of what your will says, so be sure that you include all the intended individuals as beneficiaries.
If you are looking to hire a Colorado Estate Planning Lawyer, call Baker Law Group so you can speak with an Estate Lawyer Denver residents turn to when they need probate assistance.
