What happens when you die?

To me the learning process is never ending so I look forward to attending continuing education classes. Even if I think I already know the topic well. I was at a meeting recently where there was a CE session on Asset Titling, a topic I am very familiar with. It served as a great reminder. It not only refreshed my memory, but it made me realize how often this important issue is often overlooked. Do not be intimidated. It is really fairly straight forward.

At death, property can be transferred in several ways:

By Title – The transfer of certain assets is determined by the official ownership (title) of the asset. For example, if Fred and Barney are co-owners of a car which is titled to Fred Flintstone and Barney Rubble Joint Tenants With Rights of Survivorship (JTWROS), At either Fred or Barney's death the car would be owned solely by the survivor. The deceased widow, Wilma or Betty has no claim to the property. Other types of title include sole ownership, tenants in common, and transfer on death. Any property which has an official registration will probably transfer this way including real estate, vehicles, and certain financial accounts.

By Trust – For property which is held inside a trust, the trust document will determine when and where the property will be transferred.

By Contract – a contract is simply an agreement between two or more parties. If an agreement is made for a transfer of property at death, then the contract must be fulfilled. Insurance is a contract. Life Insurance is an agreement made by an insurance company to pay a benefit to the beneficiary(ies) on the insured's death.

By Probate – Property which has not been transferred by any other method will be transferred via the legal process of probate. Probate is a court proceeding which offers neither speed nor privacy.

Specific questions regarding property transfer at death should be answered by a qualified attorney (I am not an attorney) but I provide this quick review because it emphasizes the need to keep beneficiary designations up to date. I have seen situations where older children received a benefit, but the younger children did not because the beneficiaries were not up to date. How would your current spouse react if your ex-spouse was the beneficiary of your employer's retirement plan?

Whenever you experience a significant life event, you should check your beneficiary designations. Be sure to think about your titled property, financial accounts, insurance, government and employer benefits.

You only get once chance to make a first impression, but your final deeds will be your legacy.

Tombstone 0 005 photo by casch52

Comments

[Carl Lingen]

Art-

Thanks for your answer about indexed annuities a while back.

This issue is something that most young individuals do not want to think about, but what do you recommend for a young couple or young family in deciding how much is enough if one of the income earners dies or becomes disabled?

Thank you.

[dimes]

How would your current spouse react if your ex-spouse was the beneficiary of your employer's retirement plan?

Haha, well, let's just say it would be a good thing for my spouse that he was already DEAD. But yeah, we definitely impress that on sailors to keep their SGLI designations up to date. There's the age-old tale of the guy who died with a wife and two kids but his SGLI was designated to some hussy he met at the Academy and she got everything.

[Jordon]

Hi, I am a 17 year old male and I live with my Step Mother instead of my real family for complex reasons.

I have an ISA which contains over three thousand pounds and I was worried that it would go to my family if i were to die at this time. I do NOT want it to go to them but would like it to go to my Step Mother instead. What can i do to make this happen?

Thankyou.