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Planning: Tools & Services > Estate Strategies > How Property Passes at Death
How Property Passes at Death

At death, assets transfer in the following order:

1. Deeds or titles Assets first transfer according to title. One example is property owned jointly with survivorship rights passes to the surviving joint owner.
2. Contracts or Trust Assets next transfer according to the terms of contract or trust. For example, a life insurance policy or certficate pays death benefits to the named beneficiary.
3. Will Assets that have not been transferred by title, contract or trust become "probate assets". All property in your probate estate is distributed according to the terms of your will.
4. Law Finally, if an asset has not transferred by title, contract, or trust, and the decedent does not have a valid will, then the asset is distributed according to state intestacy laws.

What should you know about your property titles?

  • Titles must be clear and correct.
  • Titles must be coordinated with your personal will, trust (if any) and beneficiary designations on life insurance, annuities and retirement plans.

If titles are not correct, clear and coordinated:

  • Delays can occur.
  • Frustration can set in.
  • Extra costs can result.
  • Transfers may not occur as desired.
Important: By law, the way in which property is titled supercedes a will. For example, if you own property jointly with survivorship rights with another person, but try to leave your share in the property to another person in your will, that clause will be ignored. The best way to know you've properly coordinated your titles is to seek legal advice from a qualified attorney.

 

 
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Thrivent Financial for Lutherans, Appleton, WI 54919-0001, is authorized to conduct business in all 50 states and the District of Columbia. NAIC # 2938-56014. Products issued by Thrivent Financial for Lutherans are available to applicants who meet membership, insurability, U.S. citizenship and residency requirements. Not all products described are available in all states. Thrivent Financial representatives are licensed insurance agents. Insurance and retirement products, where available, are individual contracts, (not group coverage), and issued by Thrivent Financial for Lutherans. Investment products are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415-1665, a wholly owned subsidiary of Thrivent Financial for Lutherans. Member FINRA. Member SIPC. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc.

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This document was last updated on Friday, July 7, 2006 at 12:27 PM