Beneficiaries and Taxes
I have added my adult children to my checking and savings accounts so in the event something happens to me they can access the money easily. Is this the best way to do this to avoid them paying taxes etc. or is their a better way?
Terry Says
They won’t pay taxes on an inheritance anyway. And as joint tenants on the account they can access the money if you need it for your care.
If they are “joint tenants with rights of survivorship, or co-owners, they will get the balance tax-free when you die.
But what about the rest of your stuff? You should name them as beneficiaries on IRAs and life insurance. But you should have a will if you have more assets — especially a house.
