Sole Ownership
This is the simplest form of ownership and gives you the greatest amount of control. This type of ownership may be held by an unmarried man or woman who owns 100% of the interest in a piece of property. This means that only one individual has the sole rights of ownership and authority to transfer that ownership. If your property has a beneficiary designation, then it may pass by way of contract. Life insurance, annuities, retirement accounts, payable on death (POD) or transfer on death (TOD) accounts are examples of property that can be owned by one individual with a beneficiary designation. Sole ownership property results in 100% of ownership included in decedent's gross estate (assuming common law state), and may or may not be included in the probate estate (depending on if it passes by way of beneficiary).

For example: Jeremy lives in Florida (non community property state) and owns XYZ stock in a brokerage account owned solely in his name with no beneficiary clause. If Jeremy dies, then 100% of the value of that account will be included in his gross estate and probate estate.

Jeremy lives in Florida (non community property state) and owns XYZ stock inside of an IRA account with a beneficiary clause. If Jeremy dies, then 100% of the value of the account will be included in his gross estate but because of the beneficiary designation, it does not pass through the probate process.



Tenancy

Related Articles
  1. Managing Wealth

    Skipping-Out on Probate Costs

    Don't let bad estate planning lead to unnecessary costs and stress for your inheritors.
  2. Retirement

    Mistakes In Designating A Retirement Beneficiary

    Make sure your beneficiary designations not only reflect your intentions but also meet the requirements to be effective.
  3. Retirement

    What You Should Know About IRA Beneficiaries: Part 2

    Here's how IRAs, and the beneficiaries you name, work with wills and trusts.
  4. Retirement

    Why You Need to Update Retirement Account Beneficiaries

    The designation of beneficiaries in retirement accounts takes precedence over a will. Don't forget to keep them updated.
  5. Financial Advisor

    Why Your Will Should Name Designated Beneficiaries

    Find out how to make the tough decisions when it comes to choosing who will receive your assets and how they will be paid out.
  6. Retirement

    An Estate Planning Must: Update Your Beneficiaries

    Life changes make it time to rewrite your plan's designations.
  7. Personal Finance

    Why Your Will Needs a 'Titanic Clause'

    If you don't have a Titanic clause in your will and disaster strikes, there's no guarantee that your intended beneficiaries will inherit your assets.
  8. Managing Wealth

    Getting Started On Your Estate Plan

    With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips.
Frequently Asked Questions
  1. Where else can I save for retirement after I max out my Roth IRA?

    The first option to explore is to determine if you can contribute to a 401(k), 403(b), or 457 plan at work. If your employer ...
  2. How did George Soros "break the Bank of England"?

    In Britain, Black Wednesday (September 16, 1992) is known as the day that speculators broke the pound. They didn't actually ...
  3. What counts as "debts" and "income" when calculating my debt-to-income (DTI) ratio?

    It's important to know your debt-to-income ratio because it's the figure lenders use to measure your ability to repay the ...
  4. Who are Monsanto's main competitors?

    Learn about Monsanto Company's two main operating divisions and its main competitors within each sector, including The Mosaic ...
Trading Center