Attorney
The way you hold title to your assets affects what happens to them when you pass away. Many people assume that having a will is enough to protect their property and ensure it goes to the right people. However, that’s not always the case. If assets aren’t titled properly, they may go through probate—a court process that can be expensive and time-consuming for your loved ones. The good news is that with the right planning, you can keep your assets out of probate and make things easier for your family when the time comes.
What Happens If You Don’t Title Your Assets Correctly?
If your assets aren’t appropriately titled, your loved ones may face unnecessary legal hurdles after you pass away. In many cases, assets that are solely in your name must go through probate, a court-supervised process that can take months or even years to resolve. During this time, your beneficiaries may have limited access to funds or property, which can create financial strain.
Probate also comes with costs, including court fees and attorney expenses, which can significantly reduce the value of what your heirs receive. Additionally, if asset titles don’t align with your estate plan and you don’t have a will, the state may determine how your property is distributed. This could mean your assets end up in the hands of unintended beneficiaries. Proper asset titling helps avoid these issues and ensures your estate is handled according to your wishes.
Common Ways to Title Assets and Their Impact on Probate
The way you title your assets affects how they transfer after your passing. Some forms of ownership allow assets to bypass probate, while others may require court involvement.
- Sole ownership – If you own an asset in your name alone, it will likely go through probate before it can be transferred to your heirs.
- Joint tenancy with right of survivorship – This allows two or more people to own an asset together. When one owner passes away, their share automatically transfers to the surviving owner(s) without probate.
- Tenancy in common – Each owner controls their share of the property, which does not automatically transfer upon death. Probate may be required for that portion.
- Community property with right of survivorship (for married couples in California) – This allows spouses to own property together, with the surviving spouse receiving full ownership without probate.
- Revocable living trusts – Assets placed in a trust avoid probate and transfer directly to beneficiaries. However, the trust must be properly funded for this to work.
Choosing the right form of ownership helps prevent delays, unnecessary costs, and legal complications.
The Role of Beneficiary Designations
Certain assets, such as retirement accounts, life insurance policies, and payable-on-death (POD) bank accounts, transfer directly to named beneficiaries without going through probate. Keeping beneficiary designations up to date ensures your assets go to the right people.
Failing to name a beneficiary or having outdated designations can create legal complications, potentially leading to probate or unintended distributions. In some cases, naming a trust as a beneficiary can offer more control over how funds are distributed. Regularly reviewing and updating your beneficiary designations ensures your estate plan reflects your current wishes.
How We Can Help You Avoid Probate
At Horizon Elder Law & Estate Planning, Inc., we help clients structure their estate plans to minimize court involvement and ensure a smooth transfer of assets. One of the most effective ways to do this is by reviewing and properly titling your assets. Many people assume that having a will is enough, but without the right ownership structures in place, their estates may still go through probate.
A revocable living trust can be a powerful tool for avoiding probate, but it must be funded appropriately. We work closely with clients to ensure assets are titled correctly and beneficiary designations align with their estate plans. Regular reviews help prevent common mistakes, such as outdated beneficiaries or assets unintentionally left out of a trust. By taking these steps, we help protect your estate from unnecessary delays, expenses, and legal challenges, making things easier for your loved ones in the future.
Protect Your Assets and Your Loved Ones
Titling your assets correctly can help your family avoid probate and unnecessary legal complications. At Horizon Elder Law & Estate Planning, Inc., we can review your estate plan and ensure everything is set up properly. Contact us today to schedule a consultation and take the next step in protecting your estate.