Account and asset titling has a substantial impact on who has control in the management of your assets. Improperly titled assets can potentially have significant consequences during the ultimate transfer, which happens upon death of the account owner. Even the most well-constructed estate plan can be compromised by improper titling, which can cause changes in the intended wealth transfer and could jeopardize tax minimization strategies.
Many investors do not realize that by holding assets in ordinary individual or joint accounts, that they may be exposing themselves, their heirs and their estates to unnecessary risk for probate and taxation. Therefore, how you title your accounts is extremely important to you and your loved ones.
Listed below are several of the most frequent scenarios for the distribution of assets when planning for retirement and beyond:
To begin, it is important that you make time for a discussion with your D.A. Davidson Financial Advisor about your objectives for retirement, gifting and inheritance. It is also important to consider insurance, contingencies for physical or mental impairment and other legacy-related issues.
You should share with your Financial Advisor how your estate plan is structured and how assets held outside of D.A. Davidson are titled, as a comprehensive view is the best path to success. In life and upon death, proper account titling can make a big difference by helping to smooth the transfer of assets while saving money and reducing anxiety.
Talk to your D.A. Davidson Financial Advisor - they have the knowledge to help you plan for a sound future.
Disclaimer: D.A. Davidson and its Financial Advisors do not provide tax or legal advice. Please consult with your tax or legal professional for guidance on your specific situation.