How a Joint Account work and how to leverage it
Joint accounts can be powerful tools for estate and tax planning, offering seamless asset transfer and potential tax efficiencies. Two primary structures exist:
- Joint Tenants with Rights of Survivorship (JTWROS): Assets automatically pass to surviving owners, bypassing probate.
- Tenants in Common (TIC): Owners hold distinct shares, distributable via will or estate planning.
Key Benefits & Considerations
- Estate Planning: Avoid probate delays and ensure swift asset transition.
- Tax Advantages: Income splitting between spouses to optimize tax brackets.
- Caution: Potential creditor exposure and unintended tax triggers require careful planning.
Let’s assess if joint ownership aligns with your wealth strategy. Book a consultation RBC Wealth Management or email me at pejman.shabanpourfard@rbc.com.
