[USER]

The way I understand it is if it’s “individual” and I die, my wife would be the beneficiary and would get all the proceeds tax free (step up basis) at the time of my death vs in the joint account wouldn’t have that advantage.

Thoughts?

[Ross]

Depends on state law. Most states have a joint tenancy law for married individuals. So the account would just become your spouse’s upon your death, but not get the step up in basis. That typically only happens for kids. Consult with a local estate planning attorney.

Or you can Google “inheritance laws in [your state]“

[Kristin]

When it is joint ownership, ownership goes to the survivor without requiring probate. Half the balances (those attributable to the deceased) get the step up.

This hedges the risk that your wife dies before you as it doesn’t matter who dies first. Either person gets the benefit.

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[Jeffrey]

You can still own individually and designate your wife as the beneficiary. But the joint account cuts thru the red tape of getting the monies transferred to her after death, and can save her the state tax liability if your state imposes one.

[Author]

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