Discuss How Ownership Affects Who Will Receive Assets After a Death.
Bang Liu, of Scranton, Pennsylvania, passed away recently at age 67.
Among his assets were the following items:
(a) Checking and savings accounts with a total balance of $45,000 with his widow, Fen, held in joint tenancy with right of survivorship.
(b) A paid-for $330,000 home with his widow, Fen, held in joint tenancy with right of survivorship.
(c) A $144,000 vacation cottage owned equally with his brother held in tenancy in common.
(d) A dry cleaning business valued at $280,000 owned in equal shares with his business partner, Fai, held in tenancy in common.
(e) An automobile valued at $14,000 owned individually.
(f) Two savings accounts of $20,000 each with his daughter named as payable at death party on one and his son named as the payable at death party on the other.
Bang’s will names his widow as his sole heir.
• Your Name, Course, Assignment #, Date
• For each asset (a -f) from the case facts above: identify who inherits any or all portion of the asset and how much each individual receives.
• Please be sure that you provide a subtotal for each asset to show that your allocations equal the full value of the asset.
• Total all of the assets allocated to each person and a grand total for all.
Sole ownership: If a person owned an asset in their name only, that asset will go through probate after their death. Probate is a legal process that ensures the deceased’s assets are distributed according to their will or state law if there is no will. If the deceased had a will, the assets will be distributed according to th
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Joint ownership: If a person owned an asset jointly with another person, such as a house or a bank account, the asset will pass to the surviving joint owner(s) after the death of the other owner(s). This is known as the “right of survivorship,” and it applies regardless of what the deceased person’s will says.
Tenancy in common: If two or more people own an asset as tenants in common, each person owns a share of the asset. When one owner dies, their share will pass to their heirs, according to their will or state law.
Beneficiary designations: Some assets, such as life insurance policies, retirement accounts, and payable-on-death bank accounts, allow the owner to name a beneficiary. When the owner dies, the asset will pass directly to the named beneficiary, regardless of what the deceased person’s will says.
In summary, ownership is a critical factor in determining how assets will be distributed after a person’s death. It is important to understand the different types of ownership and how they affect the distribution of assets to ensure that your assets are distributed according to your wishes. Consulting an estate planning attorney can be helpful in ensuring your assets are distributed as you intend after your death.