Estate planning is something that a lot of people don’t see as an immediate concern because death seems like a long way off. Because of this many individuals go through life without any estate planning documents at all. Others latch onto overly simplistic solutions feeling as though anything is better than nothing.
One of the things that some people will do instead of devising a proper estate plan is to add a beneficiary or beneficiaries to a payable on death or transfer on death account. As the name implies, when the primary account holder passes away the beneficiary assumes ownership of the resources that remain in the account.
Procrastination with regard to taking the time to put a comprehensive estate plan in place can be fueled by the idea that you have this payable on death account. This is dangerous because these accounts have severe limitations.
There is no way to account for the incapacity of the depositor so the funds would just be tied up in limbo if you were to become incapacitated. It can be impossible to give different percentages of the remainder to multiple beneficiaries. There are no tax advantages to be had, and assets placed in the account are not protected from creditors and claimants.
Arranging for the eventual distribution of your assets to your loved ones is not something to trifle with if you are a serious minded individual. If you are ready to do the right thing, take action right now to arrange for a consultation with an experienced, licensed Indianapolis estate planning lawyer.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.