• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sinclair Prosser Gasior

Estate Planning Attorneys - Annapolis, Maryland

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Call Now: (410) 573-4818

Attend a Free Workshop Trustee School

  • Home
  • About Our Firm
    • About Our Firm
    • Meet Our Team
  • Services
    • Annapolis, MD Asset Protection and Business Planning
    • Estate and Gift Tax Figures
    • Annapolis, MD Elder Law & Medicaid Services
    • Annapolis, MD Trust Administration & Probate
    • Family-Owned Businesses & Farms
    • Annapolis, MD Incapacity Planning
    • Annapolis, MD LGBTQ Estate Planning
    • Annapolis, MD Pet Planning
    • SECURE Act
    • Annapolis, MD Special Needs Planning
    • Estate Planning for Young Families
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Definitions
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Asset Protection Planning
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Power of Attorney
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Trust Administration
      • Estate Planning for Niches
    • Top 10 Estate Planning Techniques
    • Newsletters
  • COMMUNITIES WE SERVE
    • Anne Arundel County
      • Annapolis
      • Crownsville
      • Davidsonville
      • Highland Beach
      • Millersville
    • Baltimore County
    • Calvert County
      • Dunkirk
      • Huntingtown
      • Owings
    • Charles County
      • Charlotte Hall
      • Waldorf
    • Howard County
    • Prince George County
      • Bowie
      • Fort Washington
      • Glenn Dale
    • Queen Anne’s County
      • Grasonville
      • Queenstown
      • Stevensville
    • St. Mary’s County
      • Charlotte Hall
      • Leonardtown
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
  • Make A Payment
  • Client Portal
Home / Beneficiary Designations / Why is the Titling of Assets So Important?

Why is the Titling of Assets So Important?

June 14, 2018 by Jon J. Gasior, Estate Planning Attorney

“Why is the Titling of Assets So Important?” by Attorney Jon J. Gasior

In estate planning the titling of assets is often the most important consideration of how those assets will be distributed upon death. If you have not taken time lately to review how all of your assets are titled and how beneficiaries are designated, it can be a useful exercise.

Let’s look at a few examples:

Brother and sister own a piece of real estate as tenants in common. Many people think that this titling means that brother and sister own this “jointly”, however there is a very important distinction. If brother or sister die, the other party will not be the sole owner. The deceased sibling’s share will pass through their estate. If they have a will, it will go to who is designated in the will. If they do not have a will, the state laws will control the distribution through “intestate succession”.  The result can be that now sister owns the property 50%, and the other 50% owned by any number of brother’s heirs, maybe spouse, children, grandchildren, significant other, etc.

Three small words on a deed can dramatically change the outcome. Those words are “as joint tenants”. If the deed stated that brother and sister hold the property “as joint tenants” then upon the death of one sibling, the other sibling will be the sole owner.

Joint ownership is ok in some cases, but can be problematic in others. For example, any jointly owned property may be subject to the other owner’s creditors. So if brother has creditors, they can pursue a judgment against the property owned by brother and sister together. In a different example that I often see is when a parent adds a child as a joint owner on a bank account. Upon that parent’s death the joint owner child is the sole owner. That asset will not be distributed through the terms of any trust or will. This can cause problems if there are other children named in the estate planning documents.

On the other hand if an asset is titled solely, we do not have any of the problems of joint owner, or tenancy in common ownership, but that asset will have to pass through probate upon that sole owner’s death. Probate is the court supervised process of transferring title of assets. Probate is designed to protect the deceased person’s wishes, however probate can often be expensive and time consuming.

Another way of titling an asset is in a trust. A trust is a legal document that can hold title to an asset, which allows for effective management of that asset by the trustee. A common tool is a revocable living trust that allows the person setting up the trust to be the trustee and beneficiary, so they continue to have complete control over the asset during lifetime, and upon death, the trust terms determine the distribution and the distribution is made without any court probate process.

When setting up your estate plan, the key is often how the assets are titled. Your estate planning attorney can develop the best documents in the world, but if they do not match how the assets are titled, the plan may not work properly. It is important to meet with an estate planning attorney to determine exactly how things are titled and how that may or may not accomplish your goals.

 

  • Author
  • Recent Posts
Jon J. Gasior, Estate Planning Attorney
His personal experience with family and the problems that resulted from their failure to create an estate plan resulted in his desire to learn more about this area of the law. From his work in the Elder Law Clinic, he further realized the need to plan not only for death, but also for incapacity during their lifetime.
Latest posts by Jon J. Gasior, Estate Planning Attorney (see all)
  • What Assets Should I Put In My Revocable Living Trust? - May 25, 2022
  • Do I Need To Update My Estate Plan? - April 5, 2022
  • Using Life Insurance to Provide Liquidity in an Estate - March 10, 2022

Filed Under: Beneficiary Designations, Estate Planning

Other Articles You May Find Useful

Annapolis trust attorney
How Can I Encourage a Beneficiary to Use an Inheritance the Right Way?
Have You Updated Your Beneficiaries Lately?
3 generation
Do You Know Who Your Designated Beneficiaries Are?
Beneficiary Designations Aren’t a True Substitute for a Trust
Sinclair Prosser Gasior
Estate Planning for Maryland Motor Vehicles
Sinclair Prosser Gasior
Important to Coordinate Beneficiary Designations in Estate Planning

About Jon J. Gasior, Estate Planning Attorney

His personal experience with family and the problems that resulted from their failure to create an estate plan resulted in his desire to learn more about this area of the law. From his work in the Elder Law Clinic, he further realized the need to plan not only for death, but also for incapacity during their lifetime.

Primary Sidebar

Download our free estate planning worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Testimonials

5 Stars
Client Review
September 3, 2020
    

We initiated estate planning following a presentation by Sinclair Prosser Attorney Jon Gasior. We were so impressed, we contracted with them to complete our estate planning. Subsequently, we assembled information on our assets and Sinclair Prosser Gasior did the rest. Correspondence was communicated to our financial institutions and the estate was established. We were very pleased with the courteous manner of the Sinclair Prosser Gasior staff. However, it was their professionalism that made us satisfied we chose this firm to handle our estate. We have nothing but praise for Sinclair Prosser Gasior .

default image
– Walter K.

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

ANNAPOLIS

900 Bestgate Road
Suite 103, Annapolis, Maryland 21401
Phone: (410) 573-4818
Fax: (410) 573-2802

BOWIE

4201 Mitchellville Road
Suite 403, Bowie, MD 20716
Phone: (301) 970-8080
Fax: (410) 573-2802

MILLERSVILLE

1520 Jabez Run Rd
Suite 300, Millersville, Maryland 21108
Phone: (410) 573-4818
Fax: (410) 573-2802

WALDORF

Hamilton Centre II
3261 Old Washington Road, Suite 2020 Waldorf, MD 20602
Phone: 800-366-4615

Map

map for office

Footer

footer logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Maryland Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

© 2022 American Academy of Estate Planning Attorneys| Privacy Policy | Contact Us | Disclaimer | Site Map