Stephen McDaniel, an estate attorney in Memphis, tells the story of a woman who named her granddaughter as joint owner on her bank account. Available at banks, saving and loans, and credit unions, these accounts ensure that the money automatically goes to the individual you name as your beneficiary when you die. The accounts don't go through probate, and your beneficiary won't have access to the money until you die. Your heirs will receive the full step-up in basis on the securities. Power of attorney.
Many senior citizens worry that they'll someday become incapacitated and unable to pay their bills.
Joint ownership addresses those concerns, but there's an easier solution. Give someone you trust durable power of attorney for your finances. That individual can write checks on your behalf, but you can place limits on the way your money is used. Your Money appears Tuesdays. Wilson Blvd., Arlington, Va. 22229.