Financial Accounts That Avoid Probate

Coleman Law Firm

As part of your estate plan, your Tampa FL estate planning lawyer may recommend a variety of financial accounts that are designed to avoid the probate process. Additionally, these accounts can help get much needed funds in the hands of the beneficiary whom you designate.

Joint Tenants with Right of Survivorship

Your Tampa FL estate planning lawyer may recommend using this type of account that disallows creditors from reaching the proceeds in the account. Unless a signature card, agreement or contract with the financial institution specifies otherwise, the proceeds in the account pass through survivorship upon the death of the other account holder. Some individuals establish this type of account as a convenience so that another person can write checks for them. However, a Tampa FL estate planning lawyer may describe the potential drawbacks of establishing this type of account, such as making a presumptive gift to another individual.

Tenants by the Entirety

This type of account is only available to spouses. If the account was established with the unities of interest, possession, time and title, there is a presumption that a joint account held in both spouses’ names is a tenants by the entirety account.

Pay on Death Accounts

This type of account is a traditional financial account. However, your Tampa FL estate planning attorney can explain that the main difference is that the account holder can designate a person to receive the remaining balance in the account after he or she dies. The beneficiary receives no immediate right to the account or the funds in it during the account holder’s lifetime. The account holder can name one party as the beneficiary or multiple parties. Additionally, he or she can set up the account so that one of the parties listed is the trustee for the other beneficiaries.

Convenience Accounts

Your Tampa FL estate planning attorney can explain the value of using a convenience account. This type of account allows you to give limited powers to another party to assist you without having to relinquish control of the account.

If you would like to know if any of these types of accounts or any others can help you with your estate plan, contact the Coleman Law Firm by calling (727) 461-7474.

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