Titling Traps for Couples & Business Owners
Most couples and business owners spend more time picking paint colors or logos than they do thinking about how their accounts and assets are titled.
But “who owns what, and how” quietly controls:
What happens if you die or become disabled
Who a creditor can come after
Who actually controls an account or property
How your tax and estate planning works (or doesn’t)
In other words: titling can either support your financial plan…or accidentally blow it up.
What “titling” actually means
Titling is simply how ownership is listed on:
Bank and investment accounts
Real estate deeds
Business interests (LLC membership, S corp shares, partnership interests)
Vehicles and equipment
Beneficiary designations, POD/TOD registrations, etc.
The wording on those accounts and documents often matters just as much as what’s in your will or trust.
Titling traps for couples
Trap #1: Putting everything in one spouse’s name
I often see everything, house, retirement accounts, brokerage accounts, owned by one spouse. It usually happens because:
One spouse handles the money
One spouse earns more, or
Assets slowly migrated to the path of least resistance
Why it’s a problem:
If the “money spouse” dies or becomes disabled, the other spouse can be left navigating probate or delays just to access assets.
It can concentrate liability exposure in one person’s name.
It may not reflect what you actually want to happen if something goes wrong.
What to consider instead:
Review which assets make sense to own jointly and which should be separate.
Make sure each spouse would have access to enough liquidity if something happened to the other.
Coordinate titling with your estate plan and any state-specific rules (marital property, tenants by the entirety, etc., which vary by state).
Trap #2: Making everything joint with rights of survivorship
On the other side, some couples put everything “Joint with Right of Survivorship” (JTWROS) and assume that solves all planning issues.
Why it can backfire:
In blended families, JTWROS can unintentionally disinherit kids from a prior relationship (everything goes automatically to the survivor, regardless of the will).
Joint accounts can expose assets to the creditors or lawsuits of either joint owner.
It can undermine more nuanced estate planning using trusts.
What to consider instead:
Decide where automatic survivorship is helpful (for simplicity and probate avoidance).
For blended families or more complex situations, trusts and “Tenants in Common” structures may be better fits.
Coordinate with your estate attorney so titling lines up with your will/trust rather than working against it.
Trap #3: Relying on beneficiary designations without looking at the big picture
Retirement accounts, life insurance, and many investment accounts allow you to name primary and contingent beneficiaries. Bank and brokerage accounts may also allow “Payable on Death” (POD) or “Transfer on Death” (TOD) designations.
The trap:
Beneficiary forms are often filled out once and never updated.
People assume “my will covers it,” but beneficiary designations override your will.
Over time, people divorce, remarry, have kids, start businesses, and never circle back.
Result:
Ex-spouses still listed.
No contingent beneficiaries (assets may go to your estate and through probate).
Beneficiaries that conflict with your actual estate plan.
What to consider instead:
Review all beneficiary forms periodically, especially after major life changes (marriage, divorce, kids, business sale).
Confirm that names, percentages, and contingents match your broader plan.
Coordinate beneficiary designations with any trusts you’ve set up.
Trap #4: Adding kids or parents as co-owners “for convenience”
A very common one: adding an adult child or parent to a bank account or deed so “they can help pay bills” or “avoid probate.”
Why this can be risky:
You may be making an unintended gift for tax purposes.
Their creditors, lawsuits, or divorces might go after your asset.
When you die, that asset may pass 100% to that co-owner, cutting out other intended heirs.
What to consider instead:
Use properly drafted powers of attorney or authorized signer roles instead of ownership where appropriate.
Use beneficiary, POD/TOD, or trust structures to avoid probate without creating other problems.
Talk with an attorney and tax professional before adding anyone as a co-owner.
Titling traps for business owners
Business owners have an extra layer of complexity: personal and business titling can easily get tangled.
Trap #5: Mixing business and personal ownership
You might:
Run the business through an LLC or S-Corp…
But title real estate, vehicles, or key assets in your personal name
Or, worse, run everything in your personal name and treat it “like a business”
Why it’s a problem:
It can weaken liability protection (piercing the corporate veil).
It muddies tax treatment and makes bookkeeping a nightmare.
It complicates a future sale of the business or succession planning.
What to consider instead:
Decide which assets truly belong to the business versus you personally.
Title key business assets (equipment, IP, vehicles, etc.) consistently with your entity structure.
Keep business accounts and personal accounts clearly separated.
Trap #6: Giving a spouse or partner ownership “just in case” with no plan behind it
Sometimes a spouse or partner is added as a co-owner of the business “to help,” “for income,” or “for protection,” but there’s:
No operating agreement
No buy-sell agreement
No clarity on decision-making or what happens if you split, die, or sell
Why it can blow up:
If the relationship changes, you may have an unintended business partner with legal rights.
A death, disability, or divorce can freeze decision-making or trigger expensive disputes.
It can complicate any future sale or transition.
What to consider instead:
Be intentional about who actually owns equity vs. who’s on payroll.
Work with an attorney to put a clear operating agreement or shareholders’ agreement in place.
Use life and disability insurance, plus buy-sell provisions, to plan for “what ifs.”
Trap #7: Business real estate titled without a strategy
Common scenario: the business operates in a building you or your entity owns, but:
The property is titled in your personal name,
Or it sits in a separate LLC,
With no clear tax or asset-protection strategy driving the decision.
Potential issues:
Missed planning opportunities for rent deductions and long-term tax planning.
Asset-protection gaps if a lawsuit targets the operating business or the property.
Confusion around what actually gets sold if you sell the business.
What to consider instead:
Decide whether real estate should live in a separate entity and be leased to the operating company.
Make sure lease arrangements and titling coordinate with your tax strategy.
Think ahead: if you sold the business, would you keep the building? Titling should reflect that plan.
Trap #8: Outdated business titling after you’ve “upgraded” your entity
Many owners start as a sole proprietor, then later create an LLC or elect S-Corp status. The trap is never updating:
Bank accounts
Vendor and customer contracts
Licenses, permits, or insurance
Domain names, IP, and other intangible assets
Result:
Some things are still titled in your personal name or under the old entity.
Liability and tax treatment may not match what you think you have.
It complicates selling, valuing, or transferring the business.
What to consider instead:
When you change entity type, create a checklist to update titling across the board.
Work with your CPA and attorney to formally move assets and contracts to the new entity where appropriate.
Maintain clean records of ownership, capital contributions, and transfers.
How to clean up your titling (without losing your mind)
You don’t have to fix everything overnight. Start with a simple process:
Inventory everything
List bank accounts, investment accounts, retirement accounts, real estate, vehicles, business interests, insurance policies, etc.
Note exactly how each is titled and who the beneficiaries are.
Highlight red flags
Look for:Everything in one spouse’s name
Outdated or missing beneficiaries
Assets co-owned with kids or parents “for convenience”
Business assets titled personally (or vice versa)
Ownership that doesn’t match your will, trust, or business agreements
Prioritize the high-impact items
Anything that could cause a big tax, estate, or liability issue moves to the top of the list.
Fix those first with your advisor team.
Coordinate with your “triangle” of advisors
CPA/Tax advisor – to understand tax implications of moving assets.
Financial planner – to align titling with your goals, risk management, and investment strategy.
Estate/business attorney – to update documents, deeds, and agreements correctly.
Revisit periodically
Marriage/divorce, kids, new business, selling a business, moving states, or major windfalls are all triggers to review titling again.
Where I come in
At AVL Advisory, I look at your entire picture, taxes, investments, business, and estate planning, so we can spot titling traps before they become expensive problems.
For couples, that means:
Making sure each of you is protected and provided for
Aligning account titling with your wills, trusts, and beneficiary designations
Reducing surprises and “accidental disinheritance”
For business owners, that means:
Cleaning up how business and personal assets are held
Coordinating entity structure, titling, and tax strategy
Building a plan that supports the business you have and the exit you eventually want
If you’re not sure how your accounts and assets are titled, or you have a nagging feeling something isn’t quite right, this is exactly the type of work I help clients with.
If you’d like a coordinated review of your titling, taxes, and financial plan, you can book a call directly from my website’s contact page or online calendar.
Useful references:
Consumer Financial Protection Bureau – estate and housing guides
FDIC – how different account types are treated
