Why Proper Assets Titling is Important

Having the right estate planning documents may not be enough if something happens to you. 

Proper titling of assets is also important. 

Here’s why. 

Titling of an asset usually supersedes a will or trust. 

If you have a living trust, an asset has to be titled in the name of the trust to be in the trust. 

If it is not, it will flow according to the titling of the account or beneficiary designation. 

Jointly titled assets immediately transfer to the surviving owner or beneficiaries. 

On the other hand, if an asset is probated or in the living trust, the estate has to be settled before assets are transferred. 

For a surviving spouse, proper titling may help to avoid capital gains tax when one spouse passes away. 

In community property states, when one spouse dies and the asset is titled with the right of survivorship, the whole asset value gets stepped to the date of death value not just half if a community property agreement is in place.