Retitling and Repositioning Assets During Major Life Events

April 2, 2025

Your financial situation and estate planning needs evolve over time. Major life events can impact how your assets should be titled, who has access to them, and how they transfer in the future. Keeping asset titling aligned with your financial and estate planning strategy ensures efficiency, protection, and a seamless transition when needed.

Life Events That Trigger an Update to Asset Titling

Marriage or Divorce

• Marriage: You may want to add a spouse to real estate deeds, bank accounts, or investment accounts. Consider whether assets should be jointly owned or remain separate.
• Divorce: Review and update titles to remove a former spouse where necessary. Retitle property, update beneficiary designations, and ensure sole ownership where appropriate.

Birth or Adoption of a Child or Grandchild

• Consider adding children as contingent beneficiaries on retirement accounts and life insurance policies.
• If establishing a trust for minors, ensure assets are titled in a way that directs them appropriately upon your passing.

Death of a Spouse, Business Partner, or Beneficiary

• Retitle assets that were jointly owned.
• Update beneficiary designations to reflect new primary and contingent choices.
• If assets were in a trust, confirm the successor trustee and plan for continued management.

Significant Change in Assets or Business Ownership

• Buying or selling real estate, a business, or major investments requires a review of ownership structures.
• If acquiring substantial assets, consider titling them in a trust or other protected structure.
• For business owners, ensure business interests are properly assigned within an estate plan and succession plan.

Relocation to a Different State or Country

• State laws vary on asset titling, community property, and estate planning rules.
• Real estate and jointly owned assets may need to be retitled to align with new state regulations.

Health Changes or Incapacity Planning

• If facing a serious health issue, review powers of attorney and ensure assets are properly titled for ease of management.
• Consider retitling assets into a revocable living trust to avoid probate and ensure seamless access for a designated trustee.

Retirement and Major Financial Shifts

• As you transition into retirement, review and possibly consolidate accounts for easier management.
• Ensure retirement accounts have updated beneficiaries to reflect any new financial goals or family changes.

Tax Law Changes

• Tax law updates may impact estate tax thresholds, trust structures, and gifting strategies.
• Adjust titling of assets to optimize for new regulations and minimize potential tax burdens.

How to Properly Update and Retitle Assets

1. Review Ownership Structures
   • Determine whether assets should be individually owned, jointly owned, held in trust, or designated with transfer-on-death (TOD) or payable-on-death (POD) beneficiaries.
2. Update Beneficiary Designations
   • Many assets, including retirement accounts and life insurance policies, transfer based on beneficiary designations rather than a will or trust.
   • Regularly confirm beneficiaries align with current wishes.
3. Reevaluate Trust and Estate Planning Strategies
   • If assets were previously titled under a trust, ensure new acquisitions are properly assigned.
   • Work with an attorney to ensure all changes comply with estate planning goals.
4. Work with Financial and Legal Professionals
   • Estate planning attorneys and financial advisors can help ensure assets are structured efficiently for both protection and tax optimization.
   • They can also help navigate state-specific laws that may impact asset titling decisions.
5. Document and Communicate Changes
   • Keep records of all retitling and ensure heirs, trustees, or executors are aware of changes.
   • Maintain copies of updated titles, deeds, and account ownership documents.

Proactively managing asset titling and repositioning assets in response to life events ensures your estate plan remains effective, minimizes complications, and provides clarity for your heirs and beneficiaries. Regularly reviewing your financial strategy with professionals can help keep your plan aligned with your evolving goals.

Disclaimer: Investment, Trust and Estates, Wealth Planning products and services are not a deposit, are not FDIC- insured, are not insured by any federal government agency, are not guaranteed by the bank and may go down in value.

This content is for informational purposes only and does not constitute legal or tax advice. Please consult your legal or tax advisor for specific guidance tailored to your situation. First Western Trust Bank cannot provide tax advice. Please consult your tax advisor for guidance on how the information contained within may apply to your specific situation.