As you establish future financial security, there are many details to consider. You want to make sure your assets transfer easily to your beneficiaries without a lot of hassle or the lengthy and often complicated process of probate. But it’s amazing how little things slip through the cracks without an estate planning professional to point them out and clarify your wishes. For example, are joint accounts subject to probate?
Protecting Joint Accounts from Probate
Many people share multiple banking accounts with other people, especially spouses and domestic partners. Checking, savings, investments, and financial accounts are all accessible by both parties while they’re alive without issue. But without the right protections established in your estate plan, it may be challenging for your survivor to claim what has been rightfully theirs from the start.
Generally, joint accounts pass title to the other account holder upon your death and aren’t included within the probate estate like other assets. But to ensure this, a knowledgeable estate planning attorney can establish the following protections.
- Payable-on-death beneficiary. A POD beneficiary on the account designates an individual to automatically receive the assets of the joint account once all account holders are deceased.
- Transfer-on-death designation. A TOD designation or ownership form allows an individual to transfer ownership to another individual upon death.
- Revocable trust. Another way to protect joint accounts from probate is to place them in a revocable trust.
- Joint tenancy with right to survivorship. Lastly, you may also set up a joint tenancy with right of survivorship, or JTWROS, which allows the surviving account holder to take ownership without the need to go through probate.
Take advantage of an initial consultation to talk through your concerns making immediate assets more accessible to heirs upon your passing and how your estate plan helps them receive all they deserve. Other vehicles, such as a detailed will, durable power of attorney, and more create a solid financial foundation.