Financial Tips

    Financial Tips

    Financial Tips

    Will Your Property Avoid Probate?
    (Updated: 06/12/2017)

    Which of the following property title options will not avoid the probate process when the owner passes away?

    1. Transfer on Death (TOD)
    2. Joint Tenants with Rights of Survivorship (JTWROS)
    3. Tenants in Common (TIC)
    4. None of the above

     

     

     

    Answer: C.

    Although TIC is a form of joint ownership, be sure you know the consequences before titling your property in this manner. TIC assets are required to go through the probate process, and there are no rights of survivorship. So, unless the deceased individual's will says the property should pass to the surviving owner, the property will go to the estate.

    TOD and JTWROS registrations, however, will avoid probate. The entire asset will pass to the named beneficiary (in the case of TOD) or to the joint owner (in the case of JTWROS) at the owner's death.

     

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    Fact vs. Fiction

    We understand that it can be tricky navigating the world of personal finance. Everyone seems to have an opinion, and it can be hard to know what to believe. We created this series as a way to present and debunk some of the most common financial myths.

    Fiction: I only need to review the terms and conditions of my credit cards once—when I open the account.

    Fact: It's important to check the terms and conditions of your credit cards periodically to ensure that they still meet your needs. In fact, you should take stock of all your accounts regularly, including your insurance policies, annuity contracts, retirement plans, and educational savings accounts.

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    Last Updated: 06/12/2017