There are various ways by which you can pass on your assets without probate. A probate estate does not include any account or policy with a beneficiary designation or joint ownership with rights of survivorship.
At the time of death, these assets pass on to the person already designated in the will or the joint owner of the property.
No Claim on the Assets While You are Alive!
A few people forget that the payable on death clause (POD) works similarly to a life insurance policy. A beneficiary cannot claim the assets in the account while the owner is alive, neither can he withdraw or dispose of any of them.
After the owner passes away, the beneficiary can claim the assets by showing a death certificate just like you claim a life insurance policy.
What Does Joint Ownership Mean?
Joint ownership simply means that the joint owner owns the property and has immediate access to your assets when while you are alive. This is different from POD, which only applies after your death.
Older people usually give joint ownership with rights of survivorship to their children to take care of them.
You can Frustrate Your Legacy
Joint ownership with rights of survivorship comes with risks. An example of such risk is the Fischer v. Graham case, where three siblings fought over the assets with rights of ownership set up by their parents.
Parents of these siblings gave one sibling the right of ownership and directed the child to divide the assets equally among all the siblings. The child, however, decided to keep all the money instead of following the directions. And legally, he didn’t do anything wrong.
Contact a Knowledgeable and Experienced Attorney
If you are interested to know more about Joint ownership with rights of survivorship or going through a similar situation, contacting a knowledgeable estate planning attorney is always a good idea.
Contact Keystone Asset Protection and Estate Planning today to protect your assets, preserve your hard work and receive your due rights.