Content Overview 
- Summary
- What If I Want To Write My Will Myself?
- What You Can And Cannot Do In A Will
- How To Locate An Attorney To Write Your Will
- What Is A Will?
- Does My Existing Will Need To Be Updated?
- What If I Die Without A Will? (Intestate)
- How Much Does It Cost To Prepare A Will?
- What Makes A Will Valid?
- What If I Want To Leave Money Or Another Asset To A Minor?
- Legal Consequences Of Various Forms Of Ownership
- What If My Debts Exceed My Assets?
- What To Do If You Write Your Will Yourself
- What To Do If Personal Property Is Left To Be Divided
- What Should I Do About OnLine Accounts?
- Should I Speak With My Heirs About What Is In My Will?
- What Should I Do After I Execute A Will?
Wills 101
Legal Consequences Of Various Forms Of Ownership
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Following is a chart showing the legal consequences of various forms of ownership. The consequences noted will become clear as you read through the remainder of the chapter.
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LEGAL CONSEQUENCES OF VARIOUS FORMS OF OWNERSHIP |
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FORM OF OWNERSHIP |
Subject to Probate |
Subject to Federal Estate Tax |
Control during your lifetime |
Can Pass By Will |
Subject to claims of creditors before death |
Subject to claims of creditors after death |
Available to beneficiaries |
|
|
Asset solely owned |
Yes |
All |
Full |
Yes |
Yes |
Yes |
Delayed |
|
|
Asset owned jointly by spouses |
No |
One-half |
Divided |
No1 |
Yes |
No2 |
Immediate1 |
|
|
Asset owned jointly by others |
No1 |
All3 |
Divided |
No1 |
Yes |
No1 |
Immediate1 |
|
|
Assets in bank account (Totten) trust |
No |
All |
Full |
No |
Yes |
No |
Immediate |
|
|
Assets in custodial account for minors |
No |
None4
|
None |
No |
No |
No |
Immediate
|
|
|
Life insurance owned by insured |
No6 |
All |
Full |
No6 |
No |
No6 |
Immediate |
|
|
Life Insurance Owned by other than insured |
No6 |
None8 |
None |
No |
No |
No6 |
Immediate |
|
|
Life insurance payable to deceased’s estate |
Yes |
All |
Full |
Yes |
Yes7 |
Yes9 |
Delayed |
|
|
Assets in a revocable living trust |
No |
All |
Full |
No |
Yes |
No |
Immediate5 |
|
|
Assets in an irrevocable living trust |
No |
None |
None |
No |
No |
No |
Immediate5 |
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1 Provided that the joint owner survives.
2 Unless debt was incurred by both joint owners.
3 Except to the extent your estate can prove that a surviving joint owner contributed to the acquisition or improvement of the property.
4 Unless you are a custodian as well as a donor.
5 Subject, however, to all of the terms of the trust, which may include a provision postponing distribution of the property.
6 Provided that a beneficiary designated in the insurance policy survives. Otherwise the proceeds become a part of the probate estate.6
7 Limited to the cash surrender value of the policy.
8 Unless the policy is assigned to another within three years of the date of death.
9 Some states expose revocable trust assets to creditors’ claims.
The chart is from THE EXECUTOR’S HANDBOOK by Theodore E. Hughes and David Klein, Copyright © 1994 by Theodore E. Hughes and David Klein. Reprinted by permission of Facts On File, Inc.
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