You are here: Home Planning Ahead Wills 101 Legal Consequences Of ...
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Wills 101

Legal Consequences Of Various Forms Of Ownership

Next » « Previous

11/17

Following is a chart showing the legal consequences of various forms of ownership. The consequences noted will become clear as you read through the remainder of the chapter.

  

LEGAL CONSEQUENCES OF VARIOUS FORMS OF OWNERSHIP

 

FORM OF

OWNERSHIP 

Subject

to

Probate 

Subject to Federal Estate Tax 

Control during your lifetime 

Can Pass By Will

Subject to claims of creditors before death

Subject to claims of creditors after death

Available to

beneficiaries

Asset solely owned

Yes

All

Full

Yes

Yes

Yes

Delayed

Asset owned jointly by spouses

No

One-half

Divided

No1

Yes

No2

Immediate1

Asset owned jointly by others

No1

All3

Divided

No1

Yes

No1

Immediate1

Assets in bank account (Totten) trust

No

All

Full

No

Yes

No

Immediate

Assets in custodial account for minors

No

None4

 

None

No

No

No

Immediate

 

Life insurance owned by insured

No6

All

Full

No6

No

No6

Immediate

Life Insurance Owned by other than insured

No6

None8

None

No

No

No6

Immediate

Life insurance payable to deceased’s estate

Yes

All

Full

Yes

Yes7

Yes9

Delayed

Assets in a revocable living trust

No

All

Full

No

Yes

No

Immediate5

Assets in an irrevocable living trust

No

None

None

No

No

No

Immediate5

                 

 

1 Provided that the joint owner survives.

2 Unless debt was incurred by both joint owners.

3 Except to the extent your estate can prove that a surviving joint owner contributed to the acquisition or improvement of the property.

4 Unless you are a custodian as well as a donor.

5 Subject, however, to all of the terms of the trust, which may include a provision postponing distribution of the property.

6 Provided that a beneficiary designated in the insurance policy survives. Otherwise the proceeds become a part of the probate estate.6

7 Limited to the cash surrender value of the policy.

8 Unless the policy is assigned to another within three years of the date of death.

9  Some states expose revocable trust assets to creditors’ claims.

The chart is from THE EXECUTOR’S HANDBOOK by Theodore E. Hughes and David Klein, Copyright © 1994 by Theodore E. Hughes and David Klein. Reprinted by permission of  Facts On File, Inc.

 





Please share how this information is useful to you. 0 Comments

 

Post a Comment Have something to add to this topic? Contact Us.

Characters remaining:

  • Allowed markup: <a> <i> <b> <em> <u> <s> <strong> <code> <pre> <p>
    All other tags will be stripped.