Financial Tips

Financial Tips

Financial Tips

Will Your Property Avoid Probate?
(Updated: 06/12/2017)

Which of the following property title options will not avoid the probate process when the owner passes away?

  1. Transfer on Death (TOD)
  2. Joint Tenants with Rights of Survivorship (JTWROS)
  3. Tenants in Common (TIC)
  4. None of the above

 

 

 

Answer: C.

Although TIC is a form of joint ownership, be sure you know the consequences before titling your property in this manner. TIC assets are required to go through the probate process, and there are no rights of survivorship. So, unless the deceased individual's will says the property should pass to the surviving owner, the property will go to the estate.

TOD and JTWROS registrations, however, will avoid probate. The entire asset will pass to the named beneficiary (in the case of TOD) or to the joint owner (in the case of JTWROS) at the owner's death.

 

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Fact vs. Fiction

We understand that it can be tricky navigating the world of personal finance. Everyone seems to have an opinion, and it can be hard to know what to believe. We created this series as a way to present and debunk some of the most common financial myths.

Fiction: When evaluating a job offer, salary is what matters most—nothing else really affects whether I come out ahead financially.

Fact: To decide if a job switch makes good financial sense, you need to evaluate the full compensation package. This includes salary, paid time off, medical/dental insurance, retirement and investments, and annual bonus. You'll also want to inquire about other benefits the company may offer, such as subsidized child care, allowances for dependent care, tuition reimbursement, and fitness subsidies.

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Last Updated: 06/27/2017