Many people prefer to hold assets outright. Barbara Black, for example, might invest in mutual funds in her own name. Establishing the account in this form involves little time and no expense beyond the amount invested. If she wishes, Barbara can give away those fund shares to anyone she chooses or leave them to any designated heir.
However, if Barbara becomes incapable of handling her finances, assets held in her own name may be mismanaged. Some assets held in Barbara’s name may have to go through probate at her death, which can be expensive and time-consuming.
If you hold assets in your own name, you should execute a durable power of attorney that names a trusted agent to handle your finances if you are ill or injured. In addition, you can use "payable on death" and "transfer on death" beneficiary forms for your financial accounts, which will pass directly to the person or people you’ve designated without going through probate.
