Books

Step 6

Homework: What’s in a Name?

How you name/hold title to your assets, can significantly impact how they are treated after your death. Spending some time with your legal advisor to review the title of each asset on your Net Worth Statement, is an important discussion.

1. You need to decide where you want each asset or account to go after you are gone.
2. Then your legal advisor can help you advise the best way to title each asset so it gets there with the least cost and/or delay.
3. In general, a beneficiary designation on an account bypasses probate and allows that account or policy balance to go directly to the beneficiary.
4. An attorney licensed in your state of residence and who specializes in estate planning is the best resource for getting this advice because each state can have different laws.

Ways to Title Assets and Bypass the Additional Cost/Delay of Probate—THIS IS WHERE MOST PEOPLE FAIL! 

• Joint with rights of survivorship ownership on non-retirement assets
• Payable on Death (POD) designation on bank accounts: savings, money market, CDs
• Transfer on Death (TOD) designation on non-retirement accounts: individual or jointly held stock, mutual fund, and/or bond accounts
• Transfer on Death (TOD) designation on a home, vehicle or property, also called a beneficiary deed
• Title the asset in the name of a trust
• Name primary and contingent beneficiaries on retirement accounts, annuities and life insurance policies (naming your estate as a beneficiary will NOT bypass probate)

Remember, a beneficiary designation is like a mini-will on each account. Each account will get distributed to the beneficiary on that account and it will never go to your will for distribution (unless your estate is listed as beneficiary but then it goes through probate first!), so keep beneficiary designations current and use Trust, TOD or POD in the account titling as recommended by your estate planning attorney.

For more on this chapter and other steps to take before a major life event happens, check out my book the “Before” Financial Checklist: 15 Important Actions to Complete Before the Loss of a Loved One, available on Amazon.

Step 11

The First Month: Miscellaneous “To Dos”

1. Go to the DMV (Department of Motor Vehicles) to cancel driver’s license and transfer vehicle title.
2. Notify the Registrar of Voters.
3. Cancel any medication prescriptions, print subscriptions, and memberships.
4. Delete online personal accounts: email, social media, business sites, etc., to avoid fraud or identity theft. Procedures for each will vary.
5. Send out acknowledgements for cards, donations, etc., if you’ve decided that is something you want to do. This can also be delayed until a time that you are ready and able to tackle this project.
6. Contact the Post Office with forwarding information, if necessary.
7. Cancel all services no longer needed, i.e. phone, internet, cable, etc.