Life insurance trusts are sometimes used to assure desired use of insurance proceeds and for estate tax savings. Joint tenancy is a form of property ownership in which a husband and wife or others own property jointly with rights of survivorship. This means that when one joint tenant dies, the property will pass automatically to the surviving joint tenants, subject in some cases to filing death tax returns, payment of tax liabilities and payment of certain debts. Your will has no control over property which you own as a joint tenant with others and generally will not pass under the terms of your will. This may or may not be a good estate planning device, but it does not substitute for a will.
Joint tenancy disposes only of that particular property.
It makes no provision for anything else. In large estates, joint tenancy ownership of assets can increase the total inheritance taxes owed upon the death of both spouses. A previous choice may no longer be appropriate. Whatever your choice, it may be a great comfort to your loved ones to tell them of your wishes. A decision to do so usually is carried out after a family discussion by the signing and witnessing of a Donor Card which you carry in your purse or wallet.