Assets and Ownerships in Woodstock | Cash, Property, and Investments
Required

Assets and Ownerships in Woodstock

When we hear the word assets, we easily assume that it means money and lots of it. An asset can be anything of value that belongs to you, such as your savings, property, and other belongings. In Estate Planning, it is important to consider what assets you have, their value and how you own them. This can greatly impact how they are distributed after you pass away.

At Nelson Elder Care Law, our experienced lawyers are familiar with the different types of assets and ownerships in Woodstock. During our free consultations, one of our attorneys can further explain this and help determine an effective Estate Planning strategy for you and your property.

How are Assets Valued?

In Woodstock, the value of an asset is determined by calculating its worth and then subtracting a certain amount to account for your debts. This is different from the market value of an asset, which is calculated by determining what the value was at the time of the owner’s passing.

This is an important determination, and it is even more important to work with a skilled attorney to accurately calculate the value of your assets. If there is an increase in value between when you pass away and when your property is distributed, it could result in additional tax requirements for your heirs.

Marshaling Assets in Woodstock

Marshaling is the process of locating and identifying assets (cash, investments, property, etc.) in order to have a complete inventory. This complete list is necessary for Probate, a legal process that validates your Will and allows your assets to be distributed according to your wishes.

Typically, your personal representative will be in charge of marshaling assets. They will check different statements, files, and reports to ensure they have located everything. The requirements for this type of record-keeping in Woodstock will require keeping track of various things, including:

  • The assets themselves
  • The steps that were taken to identify them
  • Any changes in their value

If you only have a few accounts and have kept good records, the marshaling phase is fairly straightforward. However, in complex cases, this process can be extremely time-consuming. Factors that can complicate asset marshaling include:

  • Incomplete titles
  • Funds that are not fully vested or owned (such as a 401K)
  • Accounts or property in multiple states
  • Ownership interest from previously unfinished probates

You can simplify the marshaling process ahead of time by keeping thorough and detailed records of your own assets. Our lawyers can also help smooth the process by clarifying the exact steps that need to be taken and helping you take them.

Understanding Non-Probate Assets

A non-Probate asset is one that transfers to your heirs without going through the Probate process. This includes life insurance policies or retirement accounts with beneficiary designations, as well as jointly owned bank accounts and property.

You may have heard or seen the term POD or TOD before, which stands for payable on death or transferrable on death. A POD or TOD designation allows for someone to receive an asset without having to go through the Probate process. This could describe various financial accounts, such as:

  • Checking accounts
  • Money market accounts
  • CDs (certificate of deposit accounts)
  • Brokerage or investment accounts
  • Qualified funds (investments purchased with pretax income)

What are the Different Forms of Asset Ownership?

The simplest type of asset ownership is sole ownership, where only one person owns of a piece of property. You can have sole ownership over realty or tangible property such as vehicles, jewelry, and bank accounts.

Another form of ownership is shared ownership in Woodstock. “Tenancy in Common” means that two or more people share ownership. If the property is owned by two people, each owner generally has 50 percent interest. As long as they determine in advance where their interest will go when they pass away, the property may be able to avoid Probate.

Joint Tenancy with Rights of Survivorship may sound complicated but isn’t. It allows for two people to own property and states that whoever lives the longest will receive 100 percent of the property without having to go through Probate.

It is important to determine which of these forms of ownership is best as a pre-planning tool for your situation. There can be significant tax impacts for certain types of ownership, so we highly recommend speaking with tax professionals and our team of experienced attorneys.

Learn More About Assets and Ownerships from a Local Attorney

It is important to know whether you have shared or sole ownership of your assets, as this can impact how they will be passed on. The specific types of assets and how they were owned can determine whether your family will need to go through the Probate process and how long the marshaling phase will take.

These legal concepts can be difficult to fully understand without help from an experienced lawyer. Contact Nelson Elder Care Law to learn more about assets and ownerships in Woodstock. We look forward to speaking with you during our free consultation.

Hear From Our Clients
tes-prev
tes-next

I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

- Charlotte

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

- Kerri

Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

- Pierce

Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!

- Marcia

I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!

- Ben