Transfer on death accounts designate the beneficiary recipients who would receive the assets after the death of the real account holder.
Once the transfer on death account is created, the assets pass on directly to the assigned beneficiaries as the owner passes away.
Transfer on death accounts helps avoid probate, but they must be coordinated with the owner’s death.
One of the benefits of these accounts is that the beneficiary can more easily be revised compared to amending a trust. However, there are some crucial aspects to consider while you plan on making such account.
Make Changes with Life Events
Life changes like divorce, death, and marriage highly impact who the beneficiary would be. As these instances occur in your life, make sure to review the beneficiary and update all your estate planning accounts.
Consider Your Estate Plan
The estate plan must always align with the transfer on death accounts. You might forget to update either of them and end up dragging your loved ones in endless legal battles. The situation is completely avoidable if you keep your beneficiary plans updated on all occasions.
Appointing Minor as a Beneficiary
Remember that minors are eligible to receive the assets without court orders that describe who (adult) will make final decisions on behalf of another.
Joint Transfer on Death Accounts
One more piece of information which you might be new to you is the ‘joint transfer on death accounts.’ These are specifically applicable if you are a married couple. How this works is that if one of the partners passes away, the other will get control of the account.
If you plan to open a transfer on death account, it is better to obtain the assistance of an experienced estate planning attorney. You know the right place to refer to; contact Keystone Asset Protection and Estate Planning today and get your issues sorted out.