Practice Areas
- Medicaid
- Living Trusts
- Estate Administration and Probate
- Asset Protection
- Veterans Benefits
- Special Needs Trust
Blog 
Estate Administration and Probate
- Finding Tips On Estate Planning at the Theatre
- Update on the Status of Federal Estate Tax
- Michael Jackson Estate Makes Land Mark Estate Deal With Sony
- The Governator Says Health Reform Will "Beat Up" California
- When a will isn’t enough
News
- What Next For the Estate Tax?...
Posted on 8/5/2010 - The Growing Rate of Dementia and Alzheimer's...
Posted on 3/9/2010 - Let it snow! Pittsburgh Extends Property Tax Deadline...
Posted on 2/9/2010 - Estate Tax, Medicaid, Social Security Changes Ring In New Year...
Posted on 1/13/2010 - Main beneficiary to Michael Jackson’s estate shakes up her probate team...
Posted on 10/22/2009
Library
Estate Administration and Probate
- When Pennsylvania Estate Recovery Can Take Place By Law
- Joint Bank Accounts - Risks and Benefits
- Guidelines for Gifts and Joint Accounts
- Intestacy Laws Of Pa: Dangers of Not Having a Current Living Will
- Drafting Wills That Protect Clients' Interests: Every situation is different, which is why we select vehicles that meets each client's needs
Joint Bank Accounts - Risks and Benefits
Benefits - Because joint bank accounts are a non-probate asset, they do not have to be inventoried in the estate's account, and legal fees are usually lower because they require less work. In addition, the taxes are less because the toal value of the account prior to death is divided by the number of joint tenants and the only part taxed is the fraction in the decedent's name.
Risks - Clients often expect a joint account to be used to pay the estate's expenses but, unless the will so states, the only part of the expenses for which the joint account is liable is the inheritance tax imposed on the joint account. In addition, a joint account will affect the client's distributory scheme because the fractional share given to a beneficiary under a will or trust will not include the amount of the joint account inherited by the survivor unless will or trust so states. What is worse, clients often do not realize that, depending upon how the account is titled, they could lose control over the joint account. If the account is titled X or Y, either tenant can withdraw all of the money. If it is titled x and y, one can't withdraw the money without the consent of the other.
There is also the inheritance tax risk that, if the younger co-tenant dies first, the older one will owe inheritance tax on the portion he/she inherits which often means he/she will be paying inheritance tax on his/her own money!
If you have any questions or would like a free consultation call us toll free at 1 800 879 0984 or send us a message through our website by clicking here and we'll be certain to respond.
Elder Law Offices of Shields and Boris
109 VIP Drive
Suite 200
Wexford, PA 15090
Phone: (724) 934-5044
Toll Free: (800) 879-0984
Get Directions
Elder Law Offices of Shields and Boris
109 VIP Drive
Suite 102
Wexford, PA 15090
Phone: (724) 934-5044
Toll Free: (800) 879-0984
Get Directions
