Welcome
Kenneth E. Ostrove, Esq.
Probate & Estate Planning
5200 Lankershim Boulevard, Suite 850
North Hollywood, California 91601
(818) 505-9532
ken@kenostrove.com --- http://www.kenostrove.com
Different Ways to Hold Title to Property
You can hold title to real property, bank accounts, stocks, cars, etc. in such a way that no Will or Trust is necessary to transfer your property to your intended beneficiaries. However, while holding title in a particular way can serve as all or part of your estate planning, it does have limitations. For example, if the intended beneficiary is no longer living and there is no additional or alternate beneficiary, the property may have to go through probate to be distributed to your closest heirs, which may not be what you want. In addition, the tax consequences to the beneficiary may not be as advantageous as they would by using a will or trust. Here are some common methods of holding title which can avoid the necessity of a will, trust or probate:
1. Joint Tenancy with Right of Survivorship.
Can be used on real property, bank accounts, stocks, bonds automobile titles and other types of property. The surviving joint tenant(s) become the owner of the property on the death of the other joint tenant(s).
Examples:
Real Estate:
Homer J. Simpson and Marjorie Bouvier Simpson, Husband and Wife, as Joint Tenants with Right of Survivorship.
Bank and Financial Accounts:
Homer J. Simpson and Marjorie Bouvier Simpson, JTWRS Homer J. Simpson and Marjorie Bouvier Simpson, JT Homer J. Simpson and Marjorie Bouvier Simpson, as Joint Tenants Homer J. Simpson OR Marjorie Bouvier Simpson
Best Title for Married Persons for Real Estate:
Homer J. Simpson and Marjorie Bouvier Simpson, Husband and Wife, as Community Property, with Right of Survivorship.
2. Tenants in Common
Used on Real Estate and bank accounts. Each tenant retains the right to leave their share of the property to the beneficiaries of their choosing after death. Would require having a will or trust.
Examples:
Real Estate:
Homer J. Simpson and Marjorie Bouvier Simpson, Husband and Wife, as Tenants in Common.
Bank Account:
Bartholomew J. Simpson AND Lisa Marie Simpson
3. Trust Account (Totten Trust)
Can be used on most bank and financial institution accounts.
Example:
Homer J. Simpson and Marjorie Bouvier Simpson, In Trust for (I.T.F.) Bartholomew J. Simpson, Lisa Marie Simpson and Maggie Simpson.
4. Pay On Death
Similar to Trust Account. Can be used on bank and financial institution accounts.
Example:
Homer J. Simpson [AND] [OR] Marjorie Bouvier Simpson, Pay on Death (P.O.D.) to Bartholomew J. Simpson, Lisa Marie Simpson and Maggie Simpson.
5. Transfer On Death
Used specifically for transfer of securities, such as stocks, bonds and mutual funds.
Example:
Homer J. Simpson OR Marjorie Bouvier Simpson, Transfer on Death (T.O.D.) to Bartholomew J. Simpson, Lisa Marie Simpson and Maggie Simpson.
6. Custodial Account
Bank or Financial institution account under the California Uniform Transfer to Minors Act
This can be used for bank and financial institution accounts as well as for securities.
This is an irrevocable transfer of property that must be transferred to the child when he/she turns 18 years old. The transfer can be delayed up to age 25, but only if the custodial account specifies.
Example:
I, Homer J. Simpson, hereby transfer to that jerk, Ned Flanders, as custodian for Lisa Marie Simpson until age 23 under the California Uniform Transfers to Minors Act, the following: Springfield Insecurity Bank Account #1239475.
7. Life Insurance and Annuities
Proceeds from these are paid directly to the beneficiaries named on the policies. You can name more than one beneficiary, can designate different percentages or amounts to each beneficiary, and have alternate beneficiaries, in case someone dies.
Example:
Life Insurance of Homer J. Simpson: Primary Beneficiary: Marjorie Bouvier Simpson – 100% Secondary Beneficiaries: Bartholomew, Lisa and Maggie Simpson, 1/3 each.
