Who is the owner or beneficiary of your life’s savings?

March 8, 2019

As we are in the middle of another tax season I would like to remind you that this is a perfect time to review not only the income results and tax implications of your retirement savings but also the ownership and title of all of your investment accounts. One of the easiest ways to do that is to review your tax 1099 forms, for your bank accounts investment accounts and retirement accounts.

As we save for the future, many of us end up with multiple IRAs, savings, CDs, and retirement accounts unintentionally.

  1. Review your 1099 forms for ownership of the accounts.

   There are several forms of ownership such as individually in a.  Individual ownership in your name only, b.  joint ownership with your spouse, c.  joint ownership with an individual over age 18, d. UGMA accounts which are Custodian accounts for a minor child under the uniform gift to minors act. e. trust name

2. Review your beneficiaries of each account to make sure that you were assets are going where you want them to go.

3. Custodian accounts: If your child or grandchild is over the age of 18 (or 21 depending on the state laws regarding age of majority), it is time to make a change in the ownership of the account to their name and Social Security number.

4. Deceased ownership: If your account is owned jointly with someone who is deceased, it is a good idea to reconsider if you will change the ownership to your individual name only or add another owner to the account or a beneficiary.

If the account is owned solely by someone who is deceased and you are not a joint owner or beneficiary, changing the ownership will fall under state law.  I recommend seeking legal advice in this situation.

5. Trust accounts: If the account is owned by a revocable or a revocable trust please review the name of the trust. If you update your trust documents over the years please make sure it is in the correct and current trust name.  We often see accounts that are titled in an obsolete trust.

6. POD (pay on death) or TOD (transfer on death) accounts are often used for determining a beneficiary of the account.

Completing an annual review of your accounts, the ownership and your listed beneficiaries is a great way to keep your wishes updated so that you are paired for any of life’s unexpected emergencies.   It is important to note that any joint ownership or listed beneficiary will bypass your Last Will and Testament and your trust agreement.

 

Jackie Campbell, CPA, CFP® PFS

Campbell & Company, Wealth Advisors & CPAs

www.myCPAgroup.com

7211 Hiawatha Pkwy

Spring Hill, FL 34606

(352)683-7365

 

Investment Advisory Services offered through Retirement Wealth Advisors Inc. (RWA) a Registered Investment Advisor. Campbell and Company and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision. This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Jackie Campbell, CPA and Campbell and Company are able to provide tax services. However, you are not obligated to work with Campbell and Company and Jackie Campbell, CPA for any tax services. You are encouraged to consult your tax advisor or attorney

 

 

 

 

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