HOW YOU HOLD TITLE TO YOUR ASSETS
DETERMINES HOW YOUR ESTATE IS ADMINISTERED |
| Title Form |
Pros |
Cons |
Comments |
| Sole Name |
You have total control; no one else has access to account |
Subject to probate upon death; conservatorship or Power of Attorney upon incapacity |
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| Joint Tenants |
Quick and inexpensive to transfer title to surviving joint tenant |
Jeopardizes estate and income tax planning for couples; subjects asset to liabilities of both joint
tenants; property and stock can't be changed without consent of both joint tenants |
Takes precedence over Will, i.e., Will does not dispose of joint tenancy assets |
| Community Property |
Each spouse can dispose of his or her half; eligible for estate and income tax benefits; well spouse can manage community property assets without conservatorship if other spouse is incapacitated |
Spousal property order must be obtained in court after death of first spouse to die |
For husbands and wives only; recommended for assets such as real estate and securities which have increased in value. |
| Tenants in Common |
Good for partnerships, where you want your share to go to your family, not to other partner(s) |
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| Bank Account "In Trust For" |
No one else has access to the account; avoids probate |
Conservatorship or Power of Attorney required upon incapacity; difficult to maintain "balance" in
estate plan if certain accounts are utilized prior to death |
Do not make a minor or incapacitated person beneficiary of account |
| Living Trust |
You have total control; eligible for estate and income tax benefits; avoids probate upon death and conservatorship upon incapacity |
Paperwork and expense to establish trust and transfer title on assets |
Make sure you understand your trust and it is appropriate for your situation |
