Estate Planning Part 13 - Estate Assets not Distributed by a Will

As we mentioned in previous articles, estate planning is the process of accumulating and disposing wealth before death of individual or estate owner including married couples. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. There are estate assets of a deceased person that are not distributed by a will.
I. Estate assets not distributed by a will
1. Life insurance
Life insurance is one of many family protection plans that are paid by the owner of the policy after tax dollars and is considered a tax free pay out to designated beneficiaries and not by distribution by a will if the insured died while the policy is in place.

2. Segregate fund
Segregate funds are investment funds that offer the guarantee to the fund purchaser if he or she dies while the fund is with the insurance company. The insurance will pay up to 100% or the amount of investment, which ever is larger. Your insurance company requires you to name a beneficiary or beneficiaries. In case there is no beneficiary named, your spouse automatically become the designated beneficiary.

3. Registered pension funds including IRA account, 401K account, RRSP, and registered pension fund, registered annuity and registered retirement income fund.
All funds under the name of "registered" is not distributed by a will, since all of them are required to name a beneficiary at the time of purchase with the intention to give the spouse some kind of protection in case of sudden death of the owner.

4. Tenant by entirety
Tenant by entirety is a type of concurrent estate formerly available only to married couples, where ownership of property is treated as though the couple were a single legal person. If one of the couple dies, the asset automatically transfers to the surviving spouse.

5. Joint tenant with the right of survivor
Joint tenant with the right of survivor is a type of concurrent estate in which co-owners have right of survivor ship. If one owner dies, the deceased owner's interest in the property will pass to the surviving owner or owners.
Others include certain trust documents and transfer account at death.

II. Required documents
1. Life insurance
a) Death certificate of life insured
b) Doctor certificate for reason of death
c) Proof of age of insurance
d) Proof of beneficiary's identity
e) Application to claim amount of life insurance
f) Policy number
2. Others
a) Copy of death certificate
b) Letter of instruction
c) Social insurance number or social security number
d) Tax waiver
e) Account number
f) Trust documents

I hope this information will help. If you need more information or insurance advices, please follow my article series of the above subject at my home page at:
http://medicaladvisorjournals.blogspot.com
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/