In a recent USA TODAY article, Shannon Stevens, Managing Director at Hightower Signature Wealth, highlighted one of the most commonly overlooked aspects of estate planning: how assets are titled and how beneficiaries are designated.
“Titling is the number one thing missed in trying to make sure an estate plan is distributed in the way people intended,” Stevens explains. “It’s very, very important to understand the implications of how assets are titled.”
Why This Matters
The way an account or property is titled, along with any named beneficiaries, often determines who inherits the asset. In many cases, these designations can override what is written in a will.
If accounts are not properly set up or kept up to date, the result can be:
- Delays in distributing assets
- Unnecessary legal costs
- Assets going to unintended individuals
For example, outdated beneficiary designations could result in assets going to an ex-spouse, or accounts without beneficiaries may be forced through probate.
Planning Beyond the Basics
Stevens noted that estate planning is not just about having documents in place. It also involves reviewing how assets are owned and ensuring everything is aligned with your intentions. She recommends:
- Naming beneficiaries on key accounts
- Reviewing titling regularly, especially after major life events
- Considering tools like trusts for more complex situations
She also emphasizes that a will often plays a supporting role, rather than serving as the primary method of transferring assets.
Even a well-drafted estate plan can fall short if account titles and beneficiary designations are overlooked. Taking the time to review these details now can help prevent confusion, delays, and unintended outcomes later.
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