USA - California - Irvine

Orange County Office:
2021 Business Center Drive
Suite 207
Irvine, California 92612

E -mail: attorney@BidwellLaw.com

Phone: 949-474-0961
Fax: 949-474-0963
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Options for Asset Transfers on Death

 

Designated Beneficiary

Pay on Death

Joint Ownership

13100[1] Declaration

Trust

Probate

Will

Real Estate

No

No

Yes

No

Yes

Yes

Bank Accounts

No

Yes

Yes

Yes

Yes

Yes

Insurance Policies

Yes

No

No

Yes

Yes

Yes

Retirement Accounts, 401k, IRAs

Yes

No

No

Yes

Yes

Yes

Broker Accounts

No

Yes

Yes

Yes

Yes

Yes

Stock Certificates

No

No

Yes

Yes

No

Yes

Business Entities

No

No

Yes

No

Yes

Yes

Advantages

1. Low cost

2. Easy

1. Low cost

2. Easy

1. Low cost

2. Easy

1. Low cost

2. Easy

1. Control

2. Allows contingency planning and deferred distribution

 

1. Court Supervised

3. Allows contingency planning and deferred distribution

Disadvantages

1. No deferred distribution

1. Need cooperation of financial institution

2. No deferred distribution

3. Loss of control

1. Loss of Control

2. Joint liability.

3. 1st to die, who?

4. No deferred distribution

1. Probate assets must be less than $100,000

2. No deferred distribution

1. Cost incurred up front

1. Court Supervised

2. Red tape

3. Costly

4. Public

 

Designated Beneficiary and Payable on Death Accounts:  These are forms provided by the financial institution holding the assets. The form instructs the financial institution on what to do when the owner dies.

Joint Ownership: Ownership of the assets with another person. The ownership interest of the person who dies disappears and the surviving owner has total ownership.

Trust and Wills: A will is supervised by the Probate Court. A trust transfers assets outside the court system.

Deferred Distribution: 1. minor children, 2. estate tax planning, 3. second marriage, 4. beneficiaries with special needs, 5. protect beneficiaries from themselves, 6. multi-generation planning, 7. pets


[1] California Probate Code Section 13100.  Excluding the property described in Section 13050, if the gross value of the decedent's real and personal property in this state does not exceed one hundred thousand dollars ($100,000) and if 40 days have elapsed since the death of the decedent, the successor of the decedent may, without procuring letters of administration or awaiting probate of the will, do any of the following with respect to one or more particular items of property:

   (a) Collect any particular item of property that is money due the decedent.

   (b) Receive any particular item of property that is tangible personal property of the decedent.

   (c) Have any particular item of property that is evidence of a debt, obligation, interest, right, security, or chose in action belonging to the decedent transferred, whether or not secured by a lien on real property.


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