Planning for the future can be next to impossible because so much about it is difficult to predict. A New Jersey resident may not be able to guess how long they will be able to work, how their health will fare, or what will happen when their personal relationships as time moves forward. Despite these extensive unknowns, though, they can make responsible decisions about estate planning to protect their assets from probate and taxes.
One tool that may serve the estate planning interests of some is the payable on death designation. This post will introduce payable on death accounts to its readers, but readers are reminded that the contents of this blog include no legal or financial advice. Readers who wish to learn more about asset protection planning should reach out to their trusted estate planning lawyers.
Payable on death accounts and beneficiaries
Payable on death designations can be set up for many types of accounts. When such a designation is established, it creates a direct transfer of the account property to a named beneficiary when the account’s original owner dies. The transfer process is effectively automatic, and because of this the account stays out of the decedent’s probated estate.
Why should individuals avoid probate?
Probate is a necessary legal process, but it can also be a time-consuming and costly process. When an estate contains assets that must be inventoried and distributed according to the decedent’s will, time and money must be expended to ensure the process is undertaken correctly. Tolls like payable on death accounts create direct transfers of property ownership that preclude the properties’ inclusion in the decedent’s end-of-life probated estate.
Asset protection planning is an important consideration for individuals who want to protect their wealth for future generations. Payable on death accounts are just one option for protecting wealth at the end of life. Estate planning lawyers are excellent resources for men and women who are ready to make important decisions about their estates.