What is “Vesting” and How Does It Affect Estate Planning?

Filed under: Financial Planning

As a homeowner, it is important that you think about estate planning so that you are ready for anything that might happen in the future. I invited Andrea Shoup, an attorney with Shoup Legal, to join the conversation today to highlight the importance of estate planning. We wanted to look at a few of the simple things that can be done to protect your assets.


Estate planning involves the process of setting up your property and assets to protect your family in the event that one or both spouses pass away. Many decisions need to be made along the way such as vesting- how you take title to a property or when buying real estate. There are many ways that you can take title on the property, and it can be helpful to have the advice of a legal team to avoid problems in the future.

When you are in escrow, they will ask how you want to take title. These are some of the scenarios that you might have:

  • Purchasing the property with someone else
  • Taking it as tenants in common
  • Joint tenants
  • Husband and wife with the right of survivorship
  • You have a trust that will take title

Each of these options has a significant legal impact should someone pass away. Even though this decision might see minor right now, it will affect how the assets are handled if one of the owners dies.

Protect Your Assets with Estate Planning

The above example is just one simple aspect of estate planning. There is so much more than can be included in a plan that can’t be outlined in a short video. The most important thing that we wanted to share is the importance of putting together a plan with an experienced attorney, to ensure that the assets are passed down to your heirs in a seamless way.

An estate planning expert can help you identify your end goal so that you can make the right decisions to ensure the long-term results that you desire. Usually, the best way is to take the title in a trust to protect yourself. But, many variables need to be considered before you make this decision.

Failing to move forward with the appropriate planning could result in probate issues, which will lead to many problems for the family and heirs. In this situation, it is up to the state to decide how everything will be divided. It can be challenging and messy, even in situations that should seem easy with a surviving spouse.

Don’t make the mistake of failing to put together a good estate plan! If you have questions about your situation, talk to us at Franklin Loan Center or contact Andrea Shoup at Shoup Legal for more information (951) 445-4114.

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