Estate Planning: Why Limit Yourself?
April 17, 2012 By Augulis Law Firm
Some people recommend payable on death or transfer on death accounts as a way to transfer assets to your loved ones after you pass away. You can open payable on death accounts at banks, savings and loans, and at some brokerages. While it is true that these accounts can achieve direct asset transfers, it is important to understand their limitations.
When you start up your account you name a beneficiary. During your life you have exclusive access to the funds that are in the account, and you can close it if you want to or change the beneficiary as you see fit. After you pass away, if the account is still active any funds that remain in it will become the property of the beneficiary.
This is all well and good, but what if you want to give different sums to various different heirs? Some of these accounts will allow you to add multiple beneficiaries, but they often require an equal split.
Another limitation is the fact that payable on death accounts do not provide any type of incapacity planning solution. If you were to become incapacitated, your beneficiary would not be able to access the funds in the account.
It is not a good idea to decide on an asset transfer vehicle and then try to work around this decision. The opposite approach is actually much more logical.
You first decide what is that you want to achieve with your estate and then you take whatever steps are necessary to make your wishes a reality. The best way to go about this is with the assistance of a licensed and experienced Central New Jersey estate planning lawyer.
ABOUT THE AUTHOR: Alan Augulis
Experienced estate planning attorneys Warren NJ of the Augulis Law Firm offers estate planning and business planning resources to residents of Warren, NJ.
Copyright Augulis Law Firm
More information about Augulis Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
This is all well and good, but what if you want to give different sums to various different heirs? Some of these accounts will allow you to add multiple beneficiaries, but they often require an equal split.
Another limitation is the fact that payable on death accounts do not provide any type of incapacity planning solution. If you were to become incapacitated, your beneficiary would not be able to access the funds in the account.
It is not a good idea to decide on an asset transfer vehicle and then try to work around this decision. The opposite approach is actually much more logical.
You first decide what is that you want to achieve with your estate and then you take whatever steps are necessary to make your wishes a reality. The best way to go about this is with the assistance of a licensed and experienced Central New Jersey estate planning lawyer.
ABOUT THE AUTHOR: Alan Augulis
Experienced estate planning attorneys Warren NJ of the Augulis Law Firm offers estate planning and business planning resources to residents of Warren, NJ.
Copyright Augulis Law Firm
More information about Augulis Law Firm
View all articles published by Augulis Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
