Types of Ownership

1.    SEPARATE PROPERTY is included in the decedent’s estate. The basis
of these assets would be fair market value as of date of death. These
assets are generally subject to probate.

2.    JOINT TENANCY — transfers property to the other surviving joint
owner(s) at death regardless of what is contained in the decedents will.
Assets held in joint tenancy will not be subject to probate. For estate tax
purposes, joint tenancy property receives a step-up in basis at death on
the decedent’s interest only. (Note: Special rules apply to property held
by a husband and wife, as community property in a community property
state which permits a full step-up in basis upon the death of either
spouse.)

3.    TENANCY BY THE ENTIRETY — is a common form of joint ownership for
married couples.

4.    TENANCY IN COMMON — is property that will be subject to probate and
the actual percentage of interest owned will be included in the decedent’s
estate. The property can be willed to any other person and does not
automatically pass to other tenants in common.

5.    COMMUNITY PROPERTY — is a property owned in a community
property state that gives both husband and wife equal interest in what
they accumulate by their combined efforts. If property passes to the
surviving spouse no probate is required and the asset gets a full step up
in basis to fair market value at date of death.

6.    TOTTEN-TYPE TRUSTS — are not true trusts; they are simply a
beneficiary designation, (i.e.: “In T ust For...”). The account will transfer
to the beneficiary at death of the donor. T is type of trust avoids probate,
but is subject to estate taxation.

7.    LIFE ESTATE — ownership for the period of a lifetime only.

8.    BENEFICIARY DESIGNATION — go directly to the beneficiary and are
not subject to probate. These assets are subject to estate tax.

9.    PAY ON DEATH (POD) OR TRANSFER ON DEATH (TOD) - Some
financial accounts can use this form of title to bypass probate. The
assets are subject to estate tax.