Avoiding Probate. 12 th Edition. Mary Randolph, J.D.

Transcription

1 Avoiding Probate 12 th Edition Mary Randolph, J.D.

2 Introduction Thinking About Probate Avoidance... 1 Learning Objectives... 1 Introduction... 1 Is It Worth Your While to Avoid Probate?... 1 What Probate Avoidance Can t Change... 3 Taxes... 3 Your Family s Right to Inherit... 3 Your Creditors Rights... 4 Comparing Probate-Avoidance Methods... 5 A Lick of Common Sense... 6 Review Questions... 7 Review Answers... 8 Chapter 1 Set Up Payable-on-Death Accounts... 9 Learning Objectives... 9 Introduction... 9 The Paperwork Adding a POD Designation to a Joint Account Accounts With a Right of Survivorship Accounts With No Right of Survivorship Choosing Beneficiaries Children Multiple Beneficiaries Institutions or Businesses Your Spouse s Rights Spouses Rights in Community Property States Spouses Rights in Noncommunity Property States If a Beneficiary Dies Before You Do If You Change Your Mind How to Change a POD Designation Contradictory Will Provisions Property Settlement Agreements at Divorce Claiming the Money Review Questions Review Answers Chapter 2 Name a Beneficiary for Your Retirement Accounts Learning Objectives Introduction Choosing a Beneficiary Special Rules If You re Married or Divorced Naming Your Spouse Naming an Adult Other Than Your Spouse Naming Minor Children Naming More Than One Beneficiary Naming Your Estate Naming a Trust Naming a Charity or Another Organization Choosing Alternate Beneficiaries Required Minimum Distributions From Retirement Accounts When Distributions Must Begin Calculating the Required Minimum Distribution Why You Don t Want to Miss a Required Distribution Review Questions Review Answers... 31

3 Chapter 3 Name a Beneficiary for Stocks and Bonds Learning Objectives Introduction Transfer-on-Death Registration Who Can Use the Law How It Works Joint Accounts Your Spouse s Rights Naming Children as Beneficiaries Naming More Than One TOD Beneficiary If a Beneficiary Dies Before You Do If You Change Your Mind When Not to Use TOD Registration Claiming the Securities Registration of Government Bonds and Notes Review Questions Review Answers Chapter 4 Name a Beneficiary for Your Vehicles Learning Objectives Introduction Transfer-On-Death Registration How It Works If You Change Your Mind Transferring Title After Death Joint Ownership With the Right of Survivorship Special Transfer Procedures for Vehicles Review Questions Review Answers Chapter 5 Name a Beneficiary for Your Real Estate Learning Objectives Introduction Can You Use a TOD Deed? How It Works: An Overview Possible Drawbacks of TOD Deeds Effect on Medicaid Eligibility No Quick Sale After Death How to Prepare, Sign, and Record the Deed Get a Deed Form or Prepare Your Own Name the Beneficiary Describe the Property Sign the Deed Record the Deed Three Ways to Cancel the Deed And One Way Not To Record a Revocation Record a New TOD Deed Transfer the Property to Someone Else How the New Owner Claims the Property Review Questions Review Answers Chapter 6 Hold Property in Joint Ownership Learning Objectives Introduction Kinds of Joint Ownership That Avoid Probate Joint Tenancy How Joint Tenancy Avoids Probate ii

4 Joint Tenancy and Debts Limitations of Joint Tenancy Drawbacks of Adding a New Joint Tenant Just to Avoid Probate How to Take Title in Joint Tenancy Tenancy by the Entirety Community Property Community Property Basics Community Property With the Right of Survivorship Community Property Agreements Regular Community Property Alternatives to Joint Ownership Review Questions Review Answers Chapter 7 Create a Living Trust Learning Objectives Introduction How a Living Trust Avoids Probate Trust Basics Who s in Charge How Property Is Transferred After Your Death Other Advantages of a Living Trust Protection From Court Challenges Avoiding a Conservatorship Why You Still Need a Will Do You Really Need a Living Trust? Your Age and Health Where You Live Your Family How Much You Own What Kind of Assets You Own How Much You Owe Creating a Valid Living Trust Writing the Trust Document Choosing a Successor Trustee Leaving Trust Property to Young Beneficiaries Transferring Property to the Trust What Property to Put in a Trust Real Estate Small Business Interests Bank Accounts Individual Retirement Accounts Vehicles Property You Buy or Sell Frequently Life Insurance Securities Cash Taxes and Record Keeping Amending or Revoking a Living Trust Document Review Questions Review Answers Chapter 8 Take Advantage of Special Procedures for Small Estates Learning Objectives Introduction Why Even Large Estates May Qualify Which Assets Are Counted Subtracting What You Owe on Property iii

5 If There s No Dollar Limit Using These Rules to Plan Claiming Wages With an Affidavit Claiming Other Assets With Affidavits Simplified Court Procedures An Overview Is a Lawyer Necessary? State Rules Review Questions Review Answers Chapter 9 Make Gifts Learning Objectives Introduction The Federal Gift Tax Making Tax-Free Gifts Gifts of Up to the Annual Exclusion Amount Gifts for Tuition or Medical Bills Gifts to Your Spouse Gifts to Charities Gifts That Could Land You in Tax Trouble Loans That Are Really Gifts Gifts Made to One Person but Intended for Another Gifts With Strings Attached What to Give Property That Is Likely to Increase in Value Property That Has Increased in Value Gifts to Children Who Will Manage the Property? Special Gift Tax Rules Income Tax Considerations Thinking Before You Give Review Questions Review Answers Chapter 10 Putting It All Together Learning Objectives Introduction Alice and Frank: A Simple Life Maria: Dealing With Widowhood Mike: Midlife Concerns Jim and Terry: An Unmarried Couple Esther and Mark: New Love, Old Money Linda and Tomas: Comfortable Review Questions Review Answers Glossary Appendix State Information Index iv