You’ve taken care of your loved ones throughout their lives, but how can you ensure they’ll be provided for in the future? Knowing what beneficiary designations are and how best to transfer assets after you pass away are crucial points to keep in mind. A skilled estate planning attorney can reinforce your wishes with a comprehensive plan that outlines many options.
What Are Beneficiary Designations?
One potential way to avoid probate—a court-directed process of your asset distribution— is through beneficiary transfer. Beneficiaries are individuals or organizations you choose to receive a portion or all of your estate. During an initial consultation, an estate planning lawyer will explain how each potential solution works and why as you explain what you’re trying to achieve.
Generally, in Florida, assets that can be transferred to a beneficiary upon your death without going through probate include:
- Life insurance policies
- Retirement accounts (IRA, 401k, etc.)
- Payable on death or transfer on death accounts for bank, brokerage or other financial accounts
- Estate-gifting assets such as trusts with named beneficiaries
- Joint bank, brokerage or other financial accounts with survivorship rights
- Real estate held in joint tenancy with survivorship rights
- Transfer on death (TOD) or payable on death (POD) motor vehicle titles
- Transfer on death real estate deeds
But beneficiary designation isn’t an automatic process. You need to declare in advance stipulations such as TOD or POD to ensure your loved ones receive what you intend for them to have, instead of everything being tied up for six months or longer in the probate process. This includes tangible personal property such as artwork, collectibles, or jewelry.
The strategy you create ahead of time with a qualified estate planning attorney to secure asset transfer saves your loved ones a lot of confusion after you pass away. A few simple documents created in your estate plan means they receive most assets—especially ones they need immediate access to—in a timely and fair manner.