Continuing on my theme of community property and co-ownership of property, I wanted to address a common misunderstanding that creates a pitfall for the unwary: in Idaho, just because you have a particular beneficiary designation on an account or on life insurance does not always mean that the beneficiary will receive those funds. Take, for example, a divorced couple who has children between them. Perhaps they agree to take out life insurance policies benefiting each other in the event of ...
Own Things With Friends: Pros And Cons Of Various Ownership Ideas
Continuing on from my last post about community property laws in Idaho, today I’ll look at various types of property ownership and the pros and cons of each. I’m thinking here about how you hold bank accounts, title to real estate, or investment accounts with a co-owner. In Idaho, it is common to find property (especially real property) titled as “Bob and Sue Smith, husband and wife.” The effect of holding property in that “community property” form is that, upon the death of one spouse, ...
