JOINT OR SOLO OWNERSHIP

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elainet7
Posts: 387
Joined: Sat Dec 08, 2018 1:52 pm

JOINT OR SOLO OWNERSHIP

Post by elainet7 » Sun Nov 17, 2019 9:31 am

Should a married couple have their personal account held jointly or solo? If it is Solo the other spouse who inherits it receives the Stepped Up Basis. Of course no one knows who passes first

Silk McCue
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Joined: Thu Feb 25, 2016 7:11 pm

Re: JOINT OR SOLO OWNERSHIP

Post by Silk McCue » Sun Nov 17, 2019 9:43 am

Maybe, maybe not. If you share a joint account with $50k in it and one passes a 50% step up occurs on the account. If you have two individual accounts that have $25k in each and one passes that account receives a 100% step. In either case the percentage of total assets is stepped up by the same amount assuming all things being equal.

Cheers

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anon_investor
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Re: JOINT OR SOLO OWNERSHIP

Post by anon_investor » Sun Nov 17, 2019 9:48 am

If there is a divorce in the future... separate accounts may be helpful, especially if there were assets from before the marriage...

Arbol
Posts: 63
Joined: Sun Jul 14, 2019 3:12 pm

Re: JOINT OR SOLO OWNERSHIP

Post by Arbol » Sun Nov 17, 2019 10:07 am

Do you live in a community property state?

If your assets are significant, your basis low, and you don't live in a CP state, then consider a CP trust in Tennessee or Alaska.

A double step up in basis with community property is the best. The decedent's share and the surviving spouse's share both get step up in basis after the first death.

Topic Author
elainet7
Posts: 387
Joined: Sat Dec 08, 2018 1:52 pm

Re: JOINT OR SOLO OWNERSHIP

Post by elainet7 » Sun Nov 17, 2019 10:33 am

If there is a divorce, how are pre marriage assets affected in a community property state

sport
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Location: Cleveland, OH

Re: JOINT OR SOLO OWNERSHIP

Post by sport » Sun Nov 17, 2019 10:36 am

Before we got married, our attorney advised us to keep all accounts separate, except for a joint checking account.

Arbol
Posts: 63
Joined: Sun Jul 14, 2019 3:12 pm

Re: JOINT OR SOLO OWNERSHIP

Post by Arbol » Sun Nov 17, 2019 10:37 am

elainet7 wrote:
Sun Nov 17, 2019 10:33 am
If there is a divorce, how are pre marriage assets affected in a community property state
Your separate assets prior to marriage remains your separate asset. Living in a CP state does not change the nature of your separate property when you get marry. In a divorce, it would belong to the owner spouse.

If you convert separate assets into community property assets, then you are equal co-owners. You give up separate property rights. In a divorce, it would be split 50/50.

retired@50
Posts: 1713
Joined: Tue Oct 01, 2019 2:36 pm

Re: JOINT OR SOLO OWNERSHIP

Post by retired@50 » Sun Nov 17, 2019 10:40 am

elainet7 wrote:
Sun Nov 17, 2019 10:33 am
If there is a divorce, how are pre marriage assets affected in a community property state
My understanding is that if the prior ownership of the asset(s) can be established before the wedding day, then they can remain out of the community property bucket. No documentation would make this more of a challenge.

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

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