Common Estate Planning Questions Part 1 of 2 - On How to Handle Your Assets

When it comes to estate planning, I often receive questions about a wide range of topics. One of the most common concerns involves account ownership and asset management.

Understanding how accounts are titled and who has access to them is not just about convenience. It is about ensuring your assets transfer smoothly to your loved ones while also protecting them from potential risks.

In this first installment of a two-part series, I will answer the most common questions about asset ownership and management.

I will also outline ways to make things easier for your family after your death.

Let’s begin with a question about joint assets.

Q: What's the difference between joint ownership and transfer-on-death designation?

Joint ownership means both parties have full access to and ownership of an account or piece of real estate while they are alive.

When one owner dies, the surviving owner automatically receives full ownership. This can be convenient. However, it also comes with risks. A joint owner can withdraw all of the funds at any time.

The account may also be exposed to the debts or legal judgments of either joint owner. Transfer-on-death (TOD) or payable-on-death (POD) beneficiary designations work differently.

You maintain full control of the account during your lifetime. The beneficiary has no access or rights to the account while you are alive.

Upon your death, the assets transfer automatically to the designated beneficiary.

This structure helps avoid probate and prevents court involvement after death.

One important note: joint ownership and beneficiary designations override what people often expect in estate planning. The named person receives the asset directly, regardless of family dynamics or equal distribution intentions. This can create unintended outcomes.

For example, disputes may arise when one sibling receives a larger share of assets due to account ownership or beneficiary designations. These situations can lead to conflict among family members, especially when expectations differ from legal title.

If this is a concern for you, consider reviewing your estate plan to ensure your accounts reflect your intended wishes and distribution structure.

Q: If I hold my property jointly, or use a TOD or POD, do I need to have a Trust?

If you use joint ownership or TOD/POD instead of a trust, there are several important traps to consider.

First, as mentioned above, jointly owned property may be exposed to the creditors of either owner. I often think of a client situation involving a grandmother and her granddaughter.

The granddaughter was added to her grandmother’s bank account. The granddaughter’s husband later failed to pay a bill on a copier contract for his business. The copier company sued and obtained a judgment against him.

Because the granddaughter was liable on the judgment, the creditor was able to garnish the bank account held jointly with her grandmother. As a result, the grandmother’s funds were at risk due to the granddaughter’s legal issue.

Now consider TOD or POD designations as an alternative. These tools may avoid creditor issues during life, but they have other limitations.

A TOD or POD only takes effect upon death. It does not address incapacity planning. It can also create unintended results if there is an unexpected “order of death” issue.

For example, imagine a grandmother names her grandson as the TOD beneficiary of her home. They are involved in a car accident together.

The grandson dies first, and the grandmother dies shortly after, before updating her designation. In that case, the TOD may fail or not apply as intended.

The property would then pass through probate. It would be distributed according to Florida intestacy laws. This means the assets go to “next of kin,” not necessarily the intended beneficiary. These outcomes often conflict with what the original owner intended.

For these reasons, joint ownership and TOD/POD designations are not always reliable tools for transferring assets at death. A properly drafted trust can help avoid these issues. A trust allows assets to be managed, protected, and distributed according to your wishes—privately and efficiently.

Q: What happens to retirement accounts and life insurance policies after death?

These accounts pass directly to your named beneficiaries. They bypass probate and override instructions in your will, as long as a valid beneficiary is on file.

This is why keeping your beneficiary designations up to date is extremely important.

If your designations are outdated—such as listing an ex-spouse or a deceased person—your assets may not go where you intended. If no beneficiary is listed, the account will likely go through probate.

This can result in unnecessary time delays and added costs for your loved ones.

There is also an important issue when a minor is named as a beneficiary. In most cases, minors cannot directly receive or manage these assets.

Instead, the funds are typically held under a court-supervised arrangement until the minor reaches the age of majority. This is usually age 18 or 21, depending on state law.

Q: Do I need an inventory of my assets?

Yes. Creating an asset inventory is critically important, and it must be kept up to date. We include this in all of our planning options because it is one of the most important parts of the planning process.

Surprisingly, it is often missing from traditional estate planning done by many lawyers or legal insurance plans. Our process, called Life & Legacy PlanningⓇ, includes a full asset inventory.

Without an inventory, your family may not know:

• What assets you own

• Where those assets are located

• How to access them

  
  

This can make it more difficult and expensive to settle your estate. In some cases, lost or unclaimed assets are turned over to the state.

According to the National Association of Unclaimed Property Administrators:

• About 1 in 7 people in the U.S. have unclaimed property

• That is approximately 33 million people

• The total value is about $77 billion

  
  

To ensure your assets go to your intended beneficiaries—or chosen charities—you need a complete and updated asset inventory. It should be reviewed and maintained regularly so it remains accurate over time.

Q: How often should I review my asset inventory and account designations?

A: Your inventory and beneficiary designations need to be kept up to date over time so they reflect your current circumstances when you die. My Life & Legacy Planning process includes regular, ongoing reviews of your asset inventory so no asset ever gets lost. 

It’s also important to update your asset inventory and account designations whenever you experience a major life event such as:

• Marriage or divorce

• Birth or adoption of a child

• Death of a beneficiary

• Purchase or sale of significant assets

• Moving to a new state

• Starting a business

• Retirement

  
  

When you work with me, you won’t have to remember this on your own. I’ll proactively remind you to update your inventory and beneficiary designations and help make it as easy as possible for you to take action. 

Q: What's the best way to organize and store my asset information?

Create a clear and organized system that your loved ones can easily access if something happens to you. However, be careful about including sensitive information in your will, such as passwords.

A will becomes public record after death, so this information would not remain private. Instead, consider storing sensitive information in a secure location.

You can then share access details with trusted individuals, such as:

• A family member

• Your executor

• Your trust administrator

  
  

This ensures your information remains both secure and accessible when needed.

When we work together, I can help you evaluate the best way to structure and protect this information for your specific situation.

How We Help You Get Organized and Protected

As your Personal Lawyer Firm, we help you create a comprehensive Life & Legacy Plan. This includes:

• A complete asset inventory

• Proper account titling

• Coordinated beneficiary designations

  
  

We also help you understand the implications of different ownership structures.

This allows you to make informed decisions that fit your family’s unique situation.

We guide you through selecting the best options for your goals. We also provide ongoing support through regular plan reviews. This ensures your plan stays updated and continues to work as intended.

You gain peace of mind knowing your assets will go to the people you choose.

You also gain confidence that they will be distributed in the way you intend.

Click here to schedule a complimentary 15-minute consultation to learn more: This article is a service of a Carina de la Torre. We don't just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than you've ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

The content is sourced from Personal Family Lawyer for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you're ready to create a comprehensive estate plan, contact us to schedule your Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.