Hi Reader,
When someone passes away, their estate must be settled.
If you don't plan ahead, the courts determine who gets what via the probate process.
The catch? Probate is public, time-consuming, and costly which is far from ideal.
✅ How to Keep Your Investments Out of Probate:
1️⃣ Transfer on Death (TOD): Add a beneficiary to your brokerage account for a seamless transfer.
2️⃣ Joint Tenancy (JTWROS): A common option for spouses—when one owner passes, the other takes full ownership.
3️⃣ Living Trusts: A trust keeps assets private and avoids court delays but you must title accounts properly!
4️⃣ Retirement Account Beneficiaries: IRAs & Roth IRAs require careful planning to avoid tax pitfalls and court involvement.
⚠️ Warnings:
- A will alone does NOT bypass probate.
- Naming a minor as a beneficiary can lead to court intervention.
- Trusts as IRA beneficiaries require extra tax considerations.
A few simple steps like proper account titling and beneficiary designations, can help protect your loved ones from the hassles of probate.
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David N. Waldrop, CFP®
Owner of Bridgeview Capital Advisors, Inc. a Registered Investment Advisor.
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