Morris Hall, PLLC

Estate Planning Attorneys

MakePayment with multiple options
CALL NOW: 1 (888) 222-1328
  • Home
  • Our Firm
    • About Morris Hall
    • Attorneys
    • Our Team
    • Morris Hall Core Values
    • Communities We Serve
      • Arizona
        • Carefree
        • Flagstaff
        • Mesa
        • Oro Valley
        • Phoenix
        • Prescott
        • Scottsdale
        • Sedona
        • Tucson
    • Career Opportunities
  • Estate Planning Services
    • Advanced Estate Planning
    • Asset Protection
    • Power of Attorney
    • Trust Administration and Probate
    • Wills and Trusts
  • Resources
    • Blog
    • Do I Need an Estate Plan?
    • Elder Law Reports
    • Elder Law Resources
      • Phoenix Elder Law
      • Tucson Elder Law
    • Estate Planning Problems
    • FAQs
    • Probate Resources
      • Probate
      • Flagstaff Probate
      • Phoenix Probate
      • Sedona Probate
      • Tucson Probate
    • Published Books
      • Don’t Go Broke in a Nursing home
      • Tax Free Money for Long-Term Care!
    • Recent Law Changes and Improvements Affecting Arizona
      • Update My Living Trust
    • Reports
    • Videos
    • What to Do When Death Occurs
      • What Not To Do When Someone Dies
      • Who To Contact After A Loved Ones Death
  • Reviews
    • Testimonials
    • Review Us
  • Locations
  • Events
    • Seminars / Webinars
    • Past Webinar Recordings
  • Contact
    • Consultation Policy
    • Contact Us
    • Discounts

Are Your Bank Accounts Safe?, 7/30/2008

There are two common and simple ways to avoid probate – using joint accounts and using payable on death accounts (POD).

Joint Accounts

If an account is owned jointly in the names of two or more people and it’s designated “with rights of survivorship,” then when one account owner dies, the surviving owners will simply continue to own the account. Probate on this type of joint account simply won’t be necessary because the surviving owners will be able to remove the deceased owner’s name by showing the bank or investment company a death certificate. There are, however, several drawbacks to using this type of account:

Ÿ Gifting problems – If the original account owner adds new owners and the new owners don’t contribute any money into the account, the original owner may be deemed to have made a gift of a portion of the account to the new owners for gift tax purposes. If the gift amount exceeds the annual exclusion from gift taxes (currently $13,000 for 2012), then the gift must be reported to the IRS on a gift tax return.

Ÿ Lawsuits against joint owners – If one of the owners of a jointly owned account is sued, then the funds in the joint account may become subject to a judgment lien. This could wipe out some or possibly all of the account.

Ÿ Guardianship or conservatorship for minor owners – If the joint owner is a minor, then a court-supervised guardianship or conservatorship will need to be established in order for the account to be used for the minor’s benefit.

POD, TOD, ITF and Totten Trust Accounts

Many states have laws that allow you to designate a beneficiary of your bank and investment accounts or individual stock certificates after you die. U.S. savings bonds can also have a payable on death beneficiary. This is another easy way to avoid probate, since all that the beneficiary will need to do is show the bank or investment company a death certificate in order to access the account. As with joint accounts, however, there are several drawbacks to using POD, TOD, ITF or Totten trust accounts:

Ÿ Death of a beneficiary – If there is only one beneficiary designated and he or she predeceases the account owner and the account owner fails to add a new beneficiary prior to his or her death, then the account will become a part of the owner’s estate and need to go through probate.

Ÿ Consent of beneficiaries – If the account owner later decides to transfer the account into his or her Revocable Living Trust or wants to make other changes to the account, some financial institutions may require the consent of the designated beneficiaries to make the requested change.

Please see one of our estate planning attorneys who would be happy to discuss estate planning alternatives that will avoid probate without these unfortunate drawbacks that are associated with joint and payable on death accounts. Call 888.222.1328 today to schedule a free consultation!

Why Choose Morris Hall:
You have a number of options when it comes to estate planning, so why pick Morris Hall? First off, estate planning and asset protection are a very complicated endeavor and you should only trust someone who focuses exclusively on those matters. Also, Morris Hall is a proud member of The American Academy of Estate Planning Attorneys (AAEPA) which provides us additional support, advanced training, tools and information that is not available to others – which means that we can better protect your assets and your loved ones. We are one of only two firms in Arizona that belong to the prestigious American Academy of Estate Planning Attorneys. If you have assets and loved ones that you want to protect, you are in good hands with Morris Hall. Contact us today at 888.222.1328 to schedule an appointment!

MH logo

Main Office

7600 N 16th St, Ste 105

Phoenix, AZ 85020

Phone: 602-249-1328

Fax: 602-248-2887

Subscribe to Our Newsletter

For a sample Click Here

Offices

Our law firm proudly serves many areas in Arizona. See all of our locations here.

Our law firm proudly serves the state of Arizona.  See all of our locations here.

Toll Free: 888-222-1328

Mon-Thur: 8:00am – 5:00pm
Fri: 8:00am – 4:00pm

  • Linkedin
  • Twitter
  • Facebook
  • Youtube
  • Instagram

Need an Estate Planning Lawyer in Arizona?

Looking for an estate planning attorney near you? We have office locations in Phoenix, Mesa, Chandler, Scottsdale, West Valley, Carefree, Prescott, Sedona, Flagstaff, Tucson, and Oro Valley in Arizona so please visit us at the location that is closest to you.

  • © 2023 American Academy of Estate Planning Attorneys, Inc All rights reserved.
  • Disclaimer