
A joint tenancy account is a type of account that allows two or more people to jointly own and manage a bank account.
You can only have one joint tenancy account per account type, such as a checking or savings account.
Joint tenancy accounts are often used by married couples, business partners, or close friends who want to share financial responsibilities.
In a joint tenancy account, all account holders have equal rights and responsibilities.
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Creating and Managing a Joint Tenancy Account
Creating a joint tenancy account is a straightforward process. Four key concepts must be present: time, title, interest, and possession. These requirements may vary depending on your jurisdiction, so it's essential to check with your local authorities.
If one or more account owners are still living, the account assets transfer directly to the surviving joint owner(s) upon death. This means you can rest assured that your loved ones will be taken care of.

You can create a joint tenancy account with various types of assets, including real estate, bank accounts, brokerage accounts, and personal property. Real estate, such as houses and land, can be held in joint tenancy, but be aware that any mortgages or loans become the responsibility of the surviving owner(s).
Bank accounts, like checking and savings accounts, can be JTWROS accounts. If one of the joint owners dies, the surviving owner(s) take over the account and the deceased person is removed. Brokerage accounts can also be held in joint tenancy, but be mindful of any margin loans, which the surviving owner(s) will be responsible for paying.
To add a new joint owner to the account, you'll need to complete a New Account Application and a Change of Registration for Nonretirement Assets Due to Death form. Both the surviving joint owner and the new joint owner must sign the application.
Here are the types of accounts that can be held in joint tenancy:
- Real estate (houses, land, etc.)
- Bank accounts (checking and savings)
- Brokerage accounts
- Personal property (vehicles, artwork, collectibles, etc.)
Adding new co-owners to a joint tenancy property can be challenging, as all tenants must acquire their interest simultaneously. However, co-owners can sell or transfer their shares to others, which might create a tenancy in common instead.
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Financial and Tax Implications

Joint tenancy accounts can have significant financial and tax implications. Joint tenants are equally responsible for mortgage payments, property taxes, and maintenance costs.
Property taxes are shared equally among all co-owners, regardless of individual contributions. This means that each joint tenant is responsible for paying a portion of the property taxes.
Maintenance and repairs are also shared equally among joint owners, with decisions regarding repairs and improvements made jointly and expenses divided equally. This can help spread the financial burden of homeownership.
Income derived from the property should be shared equally among all joint tenants based on ownership interest percentages. This means that each joint tenant will receive a portion of the rental income or profit from the sale of the property.
Tax laws surrounding joint tenancy accounts are different depending on whether the joint account owners are married. For spouses, assets in JTWROS accounts may get a step-up on cost basis when either spouse passes away.
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For nonspouses, the death of one of the owners can trigger an asset transfer that the IRS considers a gift. Smaller accounts might be covered by the annual gift tax exclusion ($17,000 for 2023), but amounts over $17,000 may trigger the need to file a gift tax return.
Here are some key tax implications to consider:
- Spouses may get a step-up on cost basis when one spouse passes away, reducing capital gains taxes when selling a property.
- Nonspouses may be subject to gift tax rules or estate taxes when one owner passes away.
- Smaller accounts may be covered by the annual gift tax exclusion ($17,000 for 2023).
The right of survivorship is another significant advantage of joint tenancy. When a joint tenant passes away, their share of the property automatically passes to the surviving tenant(s), avoiding the lengthy probate process.
Estate Planning and Intestate Succession
If all joint tenancy account owners are deceased and there is a TOD beneficiary, account assets transfer directly to the beneficiary. This can be a huge relief to loved ones, as it avoids the need for probate.
A TOD beneficiary is a person or entity that is designated to receive the account assets after the death of the account owner. If the beneficiary passed away prior to the account owner, the assets will then go to any remaining primary beneficiaries.
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If there are no additional primary beneficiaries, the assets will then go to any secondary beneficiaries. If there are no secondary beneficiaries, the assets will then go to the account owner’s estate. This is why it's essential to review and update your beneficiary designations regularly.
Here are the steps to follow if all joint tenancy account owners are deceased and there is a TOD beneficiary:
- Photocopy of the death certificates
- Change of Registration for Nonretirement Assets Due to Death (PDF)
- New Account Application — Individuals (PDF)
- Inheritance tax waiver, if applicable
- Nonretirement Account Redemption (PDF), if applicable
Account Types and Disadvantages
A joint tenancy account can be beneficial for couples or business partners, but it's not without its drawbacks. One of the main disadvantages is that it can be difficult to sever the tenancy, which can lead to problems if the relationship ends.
For example, in a right of survivorship joint tenancy, the other owner automatically inherits the account upon the death of the other owner. This can be problematic if the deceased owner's estate has outstanding debts or liabilities.
The lack of control over the account can also be a disadvantage, as one owner can make decisions without consulting the other.
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Account with Living Owners

A joint tenancy account with one or more owners still living is a straightforward situation. The account assets will transfer directly to the surviving joint owner(s).
If you're looking to add a new joint owner to the account, it's a relatively simple process. You'll need to complete a New Account Application with the new joint owner and the surviving joint owner, and both of them need to sign the application.
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Account Types
You can have a joint tenancy with right of survivorship (JTWROS) on various types of accounts, including real estate, bank accounts, and brokerage accounts.
Real estate properties, such as houses and land, can be held as JTWROS. However, any mortgages or loans against the property become the responsibility of the surviving owner(s) when one of the owners dies.
Bank accounts, like checking and savings accounts, can also be JTWROS accounts. The surviving owner(s) take over the account and the deceased person is removed from the account if one of the joint owners dies.
Brokerage accounts, which hold investments, can be held as JTWROS. Keep in mind that if there's a margin loan on the account, the surviving owner(s) are responsible for paying the loan.
Personal property, such as vehicles, artwork, or collectibles, can also be held as JTWROS.
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Disadvantages

Entering into a joint account with someone can be a big step, so make sure you're dealing with someone you trust who has similar financial goals. Each owner has full ownership rights, which means unrestricted access to those assets.
Having a joint account can also mean you might forfeit control of what happens to assets if you are the first to pass away. The remaining owners can make changes, including who inherits the assets after the remaining joint owners die.
In some cases, the probate court can freeze bank accounts until the estate is settled, typically if the deceased person was heavily in debt, as the court may need to make sure creditors are paid before settling the estate.
Here are some key disadvantages of joint accounts to consider:
- Frozen bank accounts due to probate court intervention
- Lack of control over assets after the first joint owner dies
- Unrestricted access to assets for all owners
What Happens If a Tenant Stops Contributing to Property Expenses?
If a tenant stops contributing to property expenses, the other tenants may need to cover their share to avoid default or financial issues. This can lead to disputes and even legal action.

Each joint tenant is responsible for contributing to property expenses in proportion to their ownership share. If one tenant stops paying, the others may have to pick up the slack.
Disputes can arise if one tenant doesn't pull their weight, and in some cases, legal action may be necessary to enforce the co-ownership agreement.
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Frequently Asked Questions
What is the difference between joint account and survivorship account?
A joint account allows multiple parties to access its funds, while a joint account with survivorship rights ensures the remaining account holders inherit the funds upon the death of another. This key difference affects how account balances are distributed after a joint account holder passes away.
Sources
- https://ncua.gov/regulation-supervision/legal-opinions/1996/testamentary-and-joint-accounts
- https://www.allspringglobal.com/resources/account-services/account-transition/joint-account-transfer/
- https://www.investopedia.com/terms/j/joint-tenancy.asp
- https://www.nerdwallet.com/article/investing/estate-planning/joint-tenants-with-right-of-survivorship
- https://www.stokeslaw.com/news-and-insights/joint-tenancy-bank-accounts-as-part-of-estate-planning
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