The Big Estate Planning Oversight in Small Assets
When most people think about estate planning, their minds go straight to wills, trusts, investment accounts, and real estate. Those are the big ticket items—and rightly so. However, I have now seen multiple clients where seemingly insignificant small assets end up causing significant headaches for surviving spouses. If you pass away with an individually titled asset that has no beneficiary form attached, it will likely require probate. Many counties have special procedures for “small estates” that simplify it, but it still requires time and money to resolve.
Think about a modest savings account at a local bank. Or a CD opened 15 years ago. Or the car that’s paid off and still registered solely in one spouse’s name. These assets may not significantly impact a financial plan, but if they are not titled correctly, they can trigger unexpected probate proceedings, delays, and legal costs after death.
Here are a few assets to review closely:
1. Savings or Checking Account
A small checking or savings account—maybe it’s used for household spending or earmarked for a specific purpose. It often goes unnoticed in estate planning conversations.
Possible Solution: Consider adding a spouse or family member as a joint owner. Most banks also offer a TOD (Transfer on Death) beneficiary form.
2. Certificates of Deposit (CDs)
CDs are often opened and then forgotten, tucked away, and rolled over automatically at maturity. These are becoming more common as rates have gone up. It’s not uncommon for a client to have 2-3 or more CDs.
Possible Solution: Consider adding a spouse or family member as a joint owner. Most banks also offer a TOD (Transfer on Death) beneficiary form.
3. The Car Title
Many people are unaware that vehicles are treated as personal property in probate. That car sitting in the driveway—if titled solely in the deceased's name—can become an estate asset.
Possible Solution: Consider adding a spouse or family member as a joint owner. Some places allow a TOD or survivor registration.
4. Safe Deposit Boxes
These are often left untouched for years, until someone passes and the family needs access.
Possible Solution: Consider naming a joint renter or listing the box’s contents in your estate documents so the executor knows what to expect.
5. Digital Bank Accounts and Apps
In the age of mobile banking, it’s common to have small balances in digital-only banks or cash apps (Venmo, PayPal, or Cash App.
Possible Solution: Keep a secure list of digital financial accounts. Many platforms now allow beneficiary designations.
Take some time to organize these accounts and assets. You’ll provide peace of mind and simplicity for your family when it matters most.
Happy Planning,
Alex
This blog post is not advice. Please read disclaimers.