The Joint-Property Estate Plan
How many times have you heard the statement, “I don't need an estate plan; we own all of our property in joint name”? Joint property is a simple estate plan, but you need to weigh the advantages and disadvantages. As long as all of the joint tenants do not die in a common accident, joint property will pass automatically to the surviving joint tenant(s) when you die, avoiding probate.
You could set up a joint checking account with each of your children, in equal amounts, as a way to leave cash to each one at your death. You should have a very good reason for setting up a joint banking account with just one child — a reason other family members will understand.
For some people, owning property in joint name is their entire plan. For others, owning property in joint name is part of the estate plan. Get out those sheets of paper that describe each piece of property you own, and prepare to calculate the consequences of owning property in joint name. When you know the rules, you will be able to decide whether joint property is the best plan for you.
