2. Allows
contingency planning and deferred distribution
1. Court Supervised
3. Allows
contingency planning and deferred distribution
Disadvantages
1. No deferred
distribution
1. Need cooperation
of financial institution
2. No deferred
distribution
3. Loss of control
1. Loss of Control
2. Joint liability.
3. 1st to die, who?
4. No deferred
distribution
1. Probate assets
must be less than $100,000
2. No deferred
distribution
1. Cost incurred up
front
1. Court Supervised
2. Red tape
3. Costly
4. Public
Designated Beneficiary and Payable on Death Accounts:These are forms provided
by the financial institution holding the assets. The form
instructs the financial institution on what to do when the owner
dies.
Joint Ownership:
Ownership of the assets with another person. The ownership
interest of the person who dies disappears and the surviving
owner has total ownership.
Trust and Wills:
A will is supervised by the Probate Court. A trust transfers
assets outside the court system.
Deferred Distribution:
1. minor children, 2. estate tax planning, 3. second marriage,
4. beneficiaries with special needs, 5. protect beneficiaries
from themselves, 6. multi-generation planning, 7. pets
[1]California Probate Code Section
13100.
Excluding the property described in Section 13050, if
the gross value of the decedent's real and personal
property in this state does not exceed one hundred
thousand dollars ($100,000) and if 40 days have elapsed
since the death of the decedent, the successor of the
decedent may, without procuring letters of
administration or awaiting probate of the will, do any
of the following with respect to one or more particular
items of property:
(a) Collect any particular item of property that
is money due the decedent.
(b) Receive any particular item of property that
is tangible personal property of the decedent.
(c) Have any particular item of property that is
evidence of a debt, obligation, interest, right,
security, or chose in action belonging to the decedent
transferred, whether or not secured by a lien on real
property.