News | COMMUNITY PROPERTY WITH RIGHTS OF SURVIVORSHIP NOW AVAILABLE FOR FINANCIAL ACCOUNTS

COMMUNITY PROPERTY WITH RIGHTS OF SURVIVORSHIP NOW AVAILABLE FOR FINANCIAL ACCOUNTS

May 04, 2015

A new law, effective July 1, 2015, allows married couples to title their bank and brokerage accounts as communityproperty with rights of survivorship (“CPWROS”). Titling accounts as “CPWROS” will avoid the necessity of probate as any account titled in this manner will automatically pass to the surviving spouse upon the first spouse’s death after the decedent’s death certificate is presented to the financial institution holding the accounts.

Revocation of CPWROS titling occurs automatically upon divorce and can also be revoked during marriage by submitting a written document to the financial institution holding the accounts revoking the prior designation. 

While this is a great opportunity to simplify transfers at death for small estates, titling accounts as “CPWROS” may have implications with your existing estate planning so please discuss changing title with your financial and legal advisor.

 

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