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Account Titling – A Simple Step to Avoid Stress

Written by Canty Financial - Published on June 28, 2025

When people think of estate planning, they often jump straight to wills or trusts. But one of the most overlooked—and most impactful—parts of an estate plan is simply how your accounts and assets are titled.

Beneficiary designations and legal titling on accounts/ property take precedence over what’s written in your will or trust. That means if your will or trust says one thing—but your IRA, brokerage account, or real estate asset is titled differently—the title or beneficiary designation on the account/ property will control what actually happens.

If you have assets without beneficiary designations or the proper titling and only have a will in place, those assets will still need to go through the court probate process. Probate can be lengthy, expensive, and public. In contrast, assets with proper titling or beneficiary designations avoid probate entirely and can be distributed to your named beneficiaries immediately after your death—without court involvement.

Getting this right can save your family time, legal fees, and unnecessary frustration down the road. Getting it wrong can create delays, disputes, and even unintended outcomes.

Common Ways to Title Financial Accounts

Here are some of the most common ways to title accounts and how each one affects estate transfer:

Individual Ownership:
If only your name is on the account and no beneficiary is listed, the asset typically goes through probate—even if you have a will or trust.
Transfer on Death (TOD) / Payable on Death (POD):
Many bank and brokerage accounts allow you to name a beneficiary who will receive the funds directly upon your passing—bypassing probate completely. These designations take precedence over your will or trust—meaning even if your will or trust says something different, the named beneficiary will inherit the account.
Joint with Rights of Survivorship (JTWROS):
This allows the surviving owner to automatically inherit the full account without probate. Common among spouses and sometimes adult children.
Beneficiary Designations:
Retirement accounts, annuities, and life insurance policies all pass by contract to the named beneficiary—regardless of what your will or trust says. That’s why reviewing these periodically is so important.

What About Real Estate?

Some States, including New York and Florida, now allow Transfer on Death deeds (sometimes called Beneficiary Deeds or Lady Bird Deeds). This allows you to name a beneficiary for your home or other property—bypassing probate—without adding them to the deed now or creating gift tax issues.

Common Mistakes to Watch For

Outdated beneficiary designations
Life changes—divorce, death, remarriage—often leave old beneficiaries in place. That can lead to surprising and unintended outcomes.
Lack of coordination with your will or trust
For example, naming a child directly as a beneficiary may be fine in some situations, but in others it may conflict with trust planning or unintentionally exclude other heirs.
Inconsistent titling across accounts
If your trust is a key part of your estate plan, but none of your accounts are titled in the trust’s name or list it as a beneficiary, the trust may not serve its purpose.
Assuming your will controls everything
Many people believe their will directs all their assets. But accounts with named beneficiaries, TOD/POD designations, and jointly owned property all pass outside of the will. Without coordination, your estate plan can become fragmented and ineffective.
Missing contingent beneficiaries
If your primary beneficiary has passed away or can’t inherit the asset, and you haven’t named a contingent (backup) beneficiary, the asset may end up going through probate. Adding a contingent beneficiary is a simple step that provides a crucial safety net.

Now Is a Good Time to Review

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