Cropped shot of a grandmother getting kissed on the cheeks by her two adorable granddaughters
California laws surrounding inheritance are complex, even in situations where there is a comprehensive estate plan. Even if you do not expect it to happen, there is still a chance the heirs to your property could disagree with their inheritance after you’re gone. By speaking with an attorney experienced in California inheritance law, you can make a clear plan for how your assets will be managed and distributed, so there is no room for dispute.
At California Probate and Trust, our estate attorneys can develop a customized and effective inheritance plan that meets all your needs.
When you consult with an attorney at California Probate and Trust, we will discuss the details of your assets and how you would like them to be distributed after you’ve passed away. We will then come up with an inheritance plan to address both your assets and debts. An inheritance plan for liquid assets looks different than one you would use for assets such as property, bonds, and securities. We will evaluate the types of assets you want to give your beneficiaries and ensure they will properly inherit them.
At the same time, we will also consider the financial situations of each of your beneficiaries. This step is important because their life will change, either a little or a lot, when they receive their inheritance. We’ll consider their debts you know about and whether they have an estate plan already. Using this knowledge, we can make the necessary arrangements so they receive their inheritance in a manner that is beneficial rather than burdensome.
The team at California Probate and Trust have many years of experience in helping individuals get peace of mind about the future of their assets. The result of our work together is a smart and efficient plan that will properly distribute your beneficiaries’ inheritance under California law.
Contact Our California Team Today
Our firm helps high net worth clients with planning and protecting their wealth legally. Our firm has the knowledge you need to handle all matters involving inheritance preparation and/or estate planning under California law. Every situation is different, and our approach is completely personalized and customized to your unique situation and goals for today and the future, for you and your family.
If you need assistance or advice, please contact our professionals to discuss the details of your situation. Call (916) 634-1204 to speak with a member of our team today.
A revocable trust, also known as a living trust, is a legal document that allows an individual (known as the grantor or trustor) to transfer their assets into a trust that is managed by a trustee for the benefit of the trust’s beneficiaries. In California, homeowners have several reasons for why they should consider creating a revocable trust as part of their estate planning.
One of the main reasons for having a revocable trust is to avoid probate.
Probate is the legal process of distributing a deceased person’s assets to their beneficiaries. In California, probate can be a long and costly process that can take several months or even years to complete. By placing their assets into a revocable trust, homeowners can avoid the probate process and ensure that their assets are distributed to their beneficiaries in a timely and efficient manner.
Another reason for having a revocable trust is to maintain privacy. Probate proceedings are public, which means that anyone can access information about the deceased person’s assets and beneficiaries. By placing their assets into a revocable trust, homeowners can keep the distribution of their assets private and protect the privacy of their beneficiaries.
A revocable trust also allows homeowners to plan for the possibility of incapacity.
If the grantor becomes incapacitated, the trustee can step in and manage the trust assets on their behalf. This can be particularly important for homeowners who have a large estate or complex financial holdings, as it ensures that their assets are managed and protected even if they are unable to do so themselves.
A revocable trust also allows homeowners to protect their assets from creditors.
Once assets are transferred into a trust, they are no longer considered the property of the grantor and are thus protected from creditors. This can be particularly important for homeowners who are concerned about the possibility of lawsuits or other legal actions.
Finally, a revocable trust allows homeowners to control how their assets are distributed after their death.
The grantor can specify in the trust document how their assets should be distributed to their beneficiaries and can even include conditions or restrictions on the distribution. This allows homeowners to ensure that their assets are distributed in a manner that reflects their wishes and provides for their loved ones.
In conclusion, California homeowners have several reasons for why they should consider creating a revocable trust as part of their estate planning. A revocable trust can help avoid probate, maintain privacy, plan for incapacity, protect assets from creditors, and control how assets are distributed after death. It’s a valuable tool for anyone looking to ensure the efficient and orderly distribution of their assets and for protecting their loved ones. However, it’s important to note that a revocable trust is just one of many estate planning tools available and should be considered with your estate planning attorney in the context of an overall estate plan.
Please note: This website provides information, content, and materials that are not intended to provide legal advice, but rather serve as a general resource for information. Information on this website may not constitute the most up-to-date legal or other information. Please schedule a free consultation to talk with an estate attorney for answers to your specific legal questions and legal advice for your specific case.
Estate planning is an essential task that all individuals should undertake, regardless of their age or net worth.
It allows you to plan for the future and ensure that your assets are distributed according to your wishes. However, creating an estate plan can be a complex and confusing process, and many individuals choose to hire a lawyer to help them navigate the process. In this blog post, we will discuss the benefits of hiring a lawyer to help you create your estate plan.
Legal Expertise:
An estate planning lawyer has the knowledge and expertise to help you navigate the legal aspects of estate planning. They can advise you on the best legal documents to use, such as a will, establishing a trust, or power of attorney, and ensure that your documents are legally valid and enforceable. They can also help you understand the tax implications of your estate plan and ensure that you are taking advantage of any tax benefits that may be available to you.
Customized Solutions:
A lawyer can help you create a customized estate plan that is tailored to your specific needs and goals. They can take into account your assets, family dynamics, and future plans to create an estate plan that is right for you. They can also help you plan for any contingencies, such as incapacity or long-term care, and ensure that your assets are protected in case of any unforeseen events.
Peace of Mind:
Hiring a lawyer to help you create your estate plan can give you peace of mind knowing that your assets are protected and your loved ones are provided for. A lawyer can ensure that your estate plan is legally sound and that your assets will be distributed according to your wishes. They can also help you avoid common mistakes that can be costly and time-consuming to fix in the future.
Time-Saving:
Estate planning can be a time-consuming process, but hiring a lawyer can save you time and effort. A lawyer can handle the legal paperwork, research, and other tasks associated with estate planning, allowing you to focus on other important matters.
Cost-Effective:
While hiring a lawyer may seem like an added expense, it can actually be cost-effective in the long run. A lawyer can help you create an estate plan that is tailored to your needs and goals, which can save you money in the long run by avoiding costly mistakes and potential legal issues.
In conclusion, estate planning is an important task that all individuals should undertake. Hiring an estate lawyer to help you create your estate plan can offer many benefits, such as legal expertise, customized solutions, peace of mind, time-saving, and cost-effectiveness. An experienced lawyer can help you navigate the legal aspects of estate planning, ensure that your documents are legally valid and enforceable, and ensure that your assets are protected and your loved ones are provided for. It’s important to consider the value of hiring a lawyer when planning your estate.
Please note: This website provides information, content, and materials that are not intended to provide legal advice, but rather serve as a general resource for information. Information on this website may not constitute the most up-to-date legal or other information. Please schedule a free consultation to talk with a lawyer for answers to your specific legal questions and legal advice for your specific case.
Do you think estate planning is only for the rich? If so, you’re not alone. Many people have a misconception that estate planning is for people who own five houses, have millions of dollars in the bank, make two-million dollars per year, and fly to exotic locations worldwide on a whim.
But this is simply not the case. If you live in California and you’re over the age of 18, you owe it to yourself and the ones you love to consider and implement an estate plan.
What Is Estate Planning?
Before we delve into the five reasons why you need an estate plan, let’s first define estate planning. An estate plan is a written plan that identifies who will be in charge of your life and affairs when you cannot manage them yourself. If you’re thinking, “That’s never going to happen to me,” think again. Chances are, you’ve known people who’ve developed a chronic, debilitating illness that rendered them unable to make crucial decisions about their healthcare and assets. Sure, most of us share a goal of living the life of our dreams, growing old naturally, and then passing away in our sleep, surrounded by family and friends. It’s a lovely vision, but unfortunately, it’s not the reality for most of the population.
Instead, as we age, we tend to require more and more assistance with life’s essential functions – from personal hygiene and dressing to driving and shopping. Yes, we can always identify the rare case of an older adult that can still live alone, drive, climb a flight of stairs, cook, and even hear with no problems. More commonly, however, as we age into senior citizens, we lose some of these abilities. Whether we become hearing-impaired, lose our ability to see well, struggle to make it up and down the stairs, deal with fading memory, or generally slow down physically, it’s in our best interest to implement an estate plan. Here are 5 reasons why you need an estate plan
With An Estate Plan, You Can Avoid Being A Burden on Your Loved Ones
An estate plan defines expectations and clarifies roles, eliminating any confusion your children might have about their responsibilities in the aftermath of your passing. They will know and understand precisely how to proceed according to your wishes. On the other hand, if you fail to implement an estate plan, your family could be forced to spend everything they have to care for you, especially if you’re an aging parent. If there’s unresolved conflict, you could run the risk of kids or scam artists stealing your money.
When you create and implement a proper estate plan with the help of an attorney, your children can get on your bank accounts and house deed, pay the bills, and access your medical records when you lose the ability to handle these matters on your own. An experienced estate planning law firm will not only put the plan together, but they will also connect all assets to the estate plan and ensure that everyone involved understands their roles. For example, they will educate the people appointed to be the power-of-attorney or healthcare attorney to prepare them to fulfill these responsibilities. It creates peace of mind, knowing that you may not know what tomorrow brings, but at least you are ready for it.
Without an Estate Plan, When You Get Sick, the Government Gets Involved
A system does exist to take care of you when you cannot take care of yourself. Yes, you read that correctly. You don’t need an estate plan, a power-of-attorney, a healthcare directive, a will, or a trust. The catch? When you get sick and cannot make healthcare decisions independently, the government makes these decisions for you. Consider that for a moment: is there even one aspect of your life you would entrust to the government? We’re not talking about enlisting in the military and serving in an overseas war. We’re referring to what you eat for breakfast, where you live, the clothes you wear, the medicine you take, the doctors you consult, the family members who can visit you, the gifts you can give to your church, the charities you support, and even the bed you choose. Can you honestly say you trust a government official to make one or any of these decisions in your best interest? By creating an estate plan, you entrust your medical and healthcare decisions to those you love (and love you) — versus handing them over to the government or the court systems.
Setting up an Estate Plan Preserves Family Unity After You Die
When people get sick or die, it places an intense emotional strain on family relationships. Throw in money and jealousy, and the situation becomes even more fractured and difficult. Setting up an estate plan with clearly written, easily understood directives can help preserve the family bonds long after you pass away. You can experience peace-of-mind knowing that your children can get along and gather together for Thanksgiving and Christmas every year for years to come. In the absence of an estate plan, you risk leaving them to fight over money, real estate, whoever got to be the power-of-attorney, or who got a better Christmas present when they were five. Ultimately, these relationships will wither and die. You can prevent this from happening and preserve your children’s relationships with a well-planned, written, and implemented estate plan before you leave this earth. Perhaps the most meaningful benefit of a proper estate plan is the sustainment of family unity.
An Estate Plan Ensures the Right People Get The Right Assets at the Right Time
Even in the closest of families, some relationships are fraught with conflict. A well-devised estate plan guarantees that the right people will get the right assets at the right time – as long as it’s updated to reflect your most current desires. For example, if your daughter marries a guy you consider a “loser” and you don’t want to leave her anything, lest he inherits some of your assets through marriage, you should amend your estate plan. If you have specific requirements, for example, “I want my son to receive $100 a month,” or “I want my daughter to live in my house on the condition that she never sells it,” your attorney can help you clearly state these conditions in your estate plan. The bottom line? An estate plan formulated by an experienced attorney and updated as necessary will ensure the fulfillment of your directives.
Probate is the process of hiring a lawyer and going to court, which assumes responsibility for:
Paying all your taxes
Paying all your debts
Distributing whatever is left to your heirs
The entire process takes about a year to complete and distribute inheritances to your children. However, if your beneficiaries fight over these assets, it adds time and expenses to the process – not to mention unnecessary stress. Keep in mind that the California Probate Code mandates probate fees, not your attorney. If all of this sounds like a massive headache you’d prefer to avoid, you should meet with an estate planning attorney to prepare your estate plan, which you will need to fund and sign.
Is the thought of the government taking your stuff or controlling your estate after you die giving you nightmares or insomnia? Do you worry about becoming a burden to your family?
Download our free guide, 7 Questions Every Senior Needs to Ask Before Hiring an Attorney. Or, call our 24-hour hotline at (916) 306-0388 and leave us your name, phone number, and mailing address. We’ll send the guide to you ASAP.
Listen to California Probate and Trust, PC Dustin Talk About Estate Planning Issues
Estate planning is the process of creating a plan to protect your family and financial interests in the future. It can give you peace of mind and provide for the financial security of your loved ones. For those who are new to estate planning, there are a few key steps that can help you get started.
Why Estate Planning Should Be a Priority
Estate planning is essential for everyone, and it’s especially important for those who have loved ones that depend on them financially. Without an estate plan, you have no control over who will handle your estate and how it will be distributed when you die. This can lead to difficult decisions that may not be in the best interest of your family. An estate plan will ensure that your wishes are carried out in accordance with the law, and it will provide financial security for your loved ones.
How Estate Planning Can Give You Peace of Mind
Estate planning can give you peace of mind knowing that your loved ones will be taken care of in the future. It can provide clarity and direction in the event of your death or incapacity, ensuring that your wishes are followed. You can also plan for long-term care and medical decisions, ensuring that you’re taken care of in the event of an illness or disability.
Preparing for a Meeting with an Attorney
When you’re ready to create an estate plan, it’s important to find an experienced attorney who can help you through the process. Before you meet with your attorney, it’s important to gather all of the necessary information, including a list of all of your assets, a list of debts, and any documents that may be relevant to your estate plan. You should also make a list of questions that you want to ask your attorney, such as how they will handle the distribution of your assets, and whether they can provide guidance on long-term care or medical issues.
Questions to Ask Your Attorney
When meeting with your attorney, it’s important to ask questions about the estate plan that you’re creating. Here are a few questions to consider:
• How will my assets be distributed after my death?
• How can I protect my assets from creditors or lawsuits?
• What legal documents do I need to create an estate plan?
• Are there any tax considerations that I should be aware of?
• How can I make sure my estate plan is updated as my life changes?
Ready To Get Started
Creating an estate plan is an important step in protecting your family and financial interests in the future. At California Probate and Trust, PC, our experienced attorneys can help you create an estate plan that meets your needs and goals. We offer free consultations, so don’t hesitate to contact us today to get started.
Many grandparents who are financially stable love the idea of making gifts to their grandchildren. However, they are usually not aware of the myriad of issues that surround what they may consider to be a simple gift. If you are considering making a significant gift to a grandchild, you should consult with an estate planning attorney to guide you through the myriad of legal and tax issues that are involved in creating a living trust, also called a revocable trust or making such gifts.
Making a Lifetime Gift or a Bequest:
Before making a gift, you should consider whether you want to make the gift during your lifetime or leave the gift in your will. If you make the gift as a bequest in your will, you will not experience the joy of seeing your grandchild’s appreciation and use of the gift. However, there’s always the possibility that you will need the money to live on during your lifetime, and in reality, once a gift is made it cannot be taken back. Also, if you anticipate needing Medicaid or other government programs to pay for a nursing home or other benefits at some point in your life, any gifts you make in the prior five years can be considered as part of your assets when determining your eligibility.
What Form Gift Should Take:
You may consider making a gift outright to a grandchild. However, once such a gift is made, you give up control over how the funds can be used. If your grandchild decides to purchase a brand-new sports car or take an extravagant vacation, you will have no legal right to stop the grandchild. The grandchild’s parents could also in some cases access the money without your approval.
You could consider making a gift under the Uniform Gift to Minors Act (UGMA) or the Uniform Transfer to Minors Act (UTMA), depending on which state you live in. The accounts are easy to open, but once the grandchild reaches the age of majority, he or she will have unfettered access to the funds. You could also consider depositing money into a 529 plan, which is specifically designed for education purposes. Finally, you could consider establishing a trust with an estate planning attorney, which can be more expensive to set up, but can be customized to fit your needs. Such a trust can provide for spendthrift, divorce and creditor protection while allowing for more flexibility for expenditures such as education or purchase of a first home.
Tax Considerations in Estate Planning
Tax Consequences: If you have a large estate, giving gifts to grandchildren may be a great way to get money out of your estate in order to reduce your future estate tax liability. In 2011 and 2012, a single person can pass $5 million at death free of estate tax, and a couple can pass a combined $10 million without paying estate taxes. In addition, a person can give $13,000 in 2011 to any number of individuals without incurring any gift taxes. A grandparent with 10 grandchildren could give $130,000 per year to all grandchildren (and a married couple could give $260,000), thereby removing that property from his or her estate.
When it comes to establishing wills and estate plans, older Americans outpace their younger counterparts.
Still, a significant number — 19 percent of those over age 72 and 42 percent of those between 53 and 71, according to survey data — lack any type of estate plan.
Although managing these details can seem daunting, and even depressing, the task becomes far less unpleasant with proper understanding and planning. Estate planning is essential families to be prepared in the event of a loved one’s illness or passing.
If you or an aging loved one have been putting off estate planning, start with the basics and learn why it’s important take the focus off the negative and shift it to the positive benefits.
Understanding the Meaning of “Estate”
In addition to the fear factor of planning for illness and death, many families dismiss its importance because they don’t understand what “estate” means, or they believe it applies only to those with significant wealth. In reality, an estate includes anything a person owns — homes or other properties, bank accounts, automobiles and additional assets, and ownership of any licenses or patents.
A person’s estate also includes any liabilities such as mortgages. These debts will need to be settled before loved ones or beneficiaries receive any compensation or death benefits. An estate plan encompasses more than distributing assets and settling debts, however. It also outlines decisions about healthcare and other key things.
The Estate Plan’s Role in Self-Advocacy
Estate plans help people establish important guidelines that allow them to advocate for themselves. This is essential for people who wish to retain their independence and protect their assets. In addition to creating wills and other important documents, an estate plan allows people to have a say in the quality of their long-term care — whether at home or in an assisted living facility — and to qualify for associated government benefits to help pay for that care. It also helps them to protect their life savings and outline their wishes should they become incapacitated.
In the same way, Elder law attorneys can help clients develop strategies to enable seniors to better advocate for themselves in these scenarios.
What’s Included in an Estate Plan?
A properly executed estate plan typically includes a Last Will and Testament, Living Will, and Medical and Financial Powers of Attorney. Below we have listed 4 of these items and the purposes they serve:
Last Will and Testament: Allows a person to determine who will inherit assets and appoint an executor who will make sure wishes are carried out.
Living Will: Allows a person to choose the type of care he or she wants should they become hospitalized and/or incapable of making decisions independently. A Living Will would, for example, outline a person’s wishes about certain medical treatments, such as blood transfusions, or whether or not they wish to be resuscitated.
Medical Power of Attorney: Appoints someone — generally a spouse or family member — to make decisions on a person’s behalf about medical care and treatment.
Financial Power of Attorney: Appoints someone — also typically a spouse or family member — who can make financial decisions on a person’s behalf. This includes allowing access to bank accounts to ensure bills and mortgages continue to get paid in the event of illness or incapacitation.
Estate planning also includes provisions for developing Trusts. Trusts allow families to set aside money for specific people or charities while avoiding the long, drawn out process of probate. This allows heirs and beneficiaries to receive intended inheritances much more quickly.
While many trusts are revocable, meaning the families can change or terminate the trust at any time, irrevocable trusts are often used to protect assets. Whether an irrevocable trust is right for your situation depends on a number of factors, including your health, what type of care you wish to receive and how you will pay for any care you may need in the future.
If you or your loved one has been avoiding this important planning measure, now is the time to begin. Being proactive increases options and makes the process far less stressful than trying to initiate planning or make important decisions during a health crisis or death.
Cost is another reason one may cite for avoiding planning. CPT can tailor plans to specific needs, making them more affordable. Contact our office at 916-729-1307 for assistance in creating an estate plan that is right for you.
The IRS has three years from your tax return filing date to audit your return, if it suspects good faith errors. (For example, your 2013 taxes were due by April 15, 2014. The IRS has until April 15, 2017 to audit your return for good faith errors).
However, the IRS has six years to challenge your return if they think you have under-reported your gross income by 25% or more.
There is no time limit if you fail to file your return, or if you have filed a fraudulent return. You should keep your filed tax returns for at least six years.
Our estate planning lawyers suggest, if you have made a nondeductible contribution to an IRA or a Roth IRA, you should keep your financial records indefinitely in order to prove that you already paid tax on this money when the time comes to withdraw. You should keep annual summaries from your retirement accounts until you retire, or until you close the account.
Bank records should be kept for at least a year, and perhaps permanently–especially if there are payments made related to your taxes, your business expenses, home improvement costs, and mortgage payments. You should go through your bank records once a year, and shred those items that have no long-term importance.
In terms of bills and credit card receipts, you should permanently keep receipts for large purchases, such as jewelry, appliances, antiques, etc. There will be important if you have a future insurance claim for loss or damages. Keep business- and tax-related expense records for at least 7 years.
Keep all records documenting the purchase price and sales price of any owned real estate. Be sure to keep records documenting permanent improvements, such as remodeling, additions, and installations.
Paycheck stubs – one year. Once you receive your annual W-2 from your employer, make sure the information on your pay stubs matches with the W-2. If it does, shred the stubs.
Consider scanning your financial records to an electronic copy (PDF) and/or storing that information “in the cloud.” There are many providers of cloud storage, which we can discuss in more detail during your consultation.
Creating a Will is not a one-time event. You should review your will periodically, to ensure it is up to date, and make necessary changes if your personal situation, or that of your executor or beneficiaries, has changed. There are a number of life-changing events that require your Will to be revised, including:
Change in Marital Status: If you have gotten married or divorced, it is imperative that you review and modify your Will. With a new marriage, you must determine which assets you want to pass to your new spouse or step-children, and how that may relate to the beneficiary interest of your own children. Following a divorce it is a good practice to revise your Will, to formally remove the ex-spouse as a beneficiary. While you’re at it, you should also change your beneficiary on any life insurance policies, pensions, or retirement accounts. Estate planning is complicated when there are children from multiple marriages, and an attorney can help you ensure everyone is protected, which may include establishing a trust in addition to the revised Will.
Depending on jurisdiction, this may also apply to couples who have established or revoked a registered domestic partnership.
If one of your Will’s beneficiaries experiences a change in marital status, that may also trigger a need to revise your Will.
Births: Upon the birth of a new child, the parents should amend their Wills immediately, to include the names of the guardians who will care for the child if both parents die. Also, parents or grandparents may wish to modify the distribution of assets provided in their Wills, to include the new addition to the family.
Deaths or Incapacitation: If any of the named executors or beneficiaries of a Will, or the named guardians for your children, pass away or become incapacitated, your Will should be revised accordingly.
Change in Assets: Your Will may need to be changed if the value of your assets has significantly increased or decreased, or if you dispose of an asset. You may want to modify the distribution of other assets in your estate, to account for the changed value or disposition of the asset.
Change in Employment: A change in the amount and/or source of income means your Will should be examined to see if any changes must be made to that document. Retirement or changing jobs could entail moving to another state, thus subjecting your estate to the laws of that state when you die. If the change in income modifies your investing, saving or spending habits, it may be time to review your Will and make sure the distribution to your beneficiaries will be as you intended.
Changes in Probate or Tax Laws: Wills should be drafted to maximize tax benefits, and to ensure the decedent’s wishes are carried out. If the laws regarding taxation of the estate, distribution of assets, or provisions for minor children have changed, you should have your Will reviewed by an estate planning attorney to ensure your family is fully protected and your wishes will be fully carried out.
When planning your estate, you must consider how you hold title to your real and personal property
The title and your designated beneficiaries will control how your real estate, bank accounts, retirement accounts, vehicles and investments are distributed upon your death, regardless of whether there is a will or trust in place and potentially with a result that you never intended.
One of the most important steps in establishing your estate plan is transferring title to your assets. If you have created a living trust, also called a revocable trust in CA it is absolutely useless if you fail to transfer the title on your accounts, real estate or other property into the trust. Unless the assets are formally transferred into your living trust, they will not be subject to the terms of the trust and will be subject to probate.
Even if you don’t have a living trust, how you hold title to your property can still help your heirs avoid probate altogether. This ensures that your assets can be quickly transferred to the beneficiaries, and saves them the time and expense of a probate proceeding. Listed below are three of the most common ways to hold title to property; each has its advantages and drawbacks, depending on your personal situation.
Tenants in Common
When two or more individuals each own an undivided share of the property, it is known as a tenancy in common. Each co-tenant can transfer or sell his or her interest in the property without the consent of the co-tenants. In a tenancy in common, a deceased owner’s interest in the property continues after death and is distributed to the decedent’s heirs. Property titled in this manner is subject to probate, unless it is held in a living trust, but it enables you to leave your interest in the property to your own heirs rather than the property’s co-owners.
Joint Tenants
In joint tenancy, two or more owners share a whole, undivided interest with right of survivorship. Upon the death of a joint tenant, the surviving joint tenants immediately become the owners of the entire property. The decedent’s interest in the property does not pass to his or her beneficiaries, regardless of any provisions in a living trust or will. A major advantage of joint tenancy is that a deceased joint tenant’s interest in the property passes to the surviving joint tenants without the asset going through probate. Joint tenancy has its disadvantages, too. Property owned in this manner can be attached by the creditors of any joint tenant, which could result in significant losses to the other joint tenants. Additionally, a joint tenant’s interest in the property cannot be sold or transferred without the consent of the other joint tenants.
Community Property with Right of Survivorship
Some states allow married couples to take title in this manner. When property is held this way, a surviving spouse automatically inherits the decedent’s interest in the property, without probate.
Make sure your estate planning attorney has a list of all of your property and exactly how you hold title to each asset, as this will directly affect how your property is distributed after you pass on. Automatic rules governing survivorship will control how property is distributed, regardless of what is stated in your will or living trust.
