Estate planning involves making decisions about how to distribute assets after death. Proper asset titling is an important part of this process. By understanding different titling strategies, individuals can ensure their assets pass smoothly to beneficiaries while minimizing taxes and legal complications.
Joint ownership with right of survivorship
Joint ownership with the right of survivorship (JTWROS) allows two or more people to hold property together. In Georgia, when one owner dies, the surviving owner automatically inherits the deceased’s share. This method avoids probate, which can save time and money. However, it may not always align with the overall estate plan, so you must carefully consider this option.
Tenancy in common
Tenancy in common is another way to title assets, allowing multiple people to share ownership. Unlike JTWROS, when one owner dies, their share of the property does not automatically go to the other owners. Instead, it passes according to the deceased’s will or Georgia’s intestate laws if there is no will. This strategy provides more flexibility in distributing assets to heirs but does not avoid probate.
Beneficiary designations
Beneficiary designations are an effective way to ensure certain assets, such as life insurance policies, retirement accounts, and payable-on-death (POD) accounts, are transferred directly to a chosen beneficiary. In Georgia, assets with beneficiary designations bypass probate and go directly to the named individual. You need to keep these designations up to date and ensure they align with the overall estate plan.
Revocable living trust
A revocable living trust offers more control and flexibility in asset distribution. In Georgia, assets placed in a revocable living trust avoid probate, providing privacy and potentially reducing legal fees. The trust creator can modify or revoke the trust during their lifetime, offering flexibility. However, it requires careful planning and legal guidance to set up properly.
Proper asset titling is an important component of Georgia estate planning. By understanding and using these strategies, individuals can protect their assets and ensure a smooth transfer to their loved ones.