Everyone has an estate plan , whether intentional or by default. People who die without wills or trusts are said to die intestate . State law provides the rules of distribution that must be followed when a person dies intestate. In most cases intestate estates must be probated, which involves a court proceeding, and in many cases state law may require a distribution that you would not want. You also have an estate plan if your assets are held in joint tenancy.
Many people put their assets in joint tenancy for the purpose of avoiding probate.
What people do not understand is that joint tenancy only avoids probate when there is a surviving joint tenant. When the last former joint tenant dies, the property will be probated, unless it has been transferred to a trust. The joint tenancy form of ownership may also have many unintended and unfavorable consequences. For example, if a person places a home in joint tenancy with a son or daughter the entire property is usually subject to attachment by a creditor of any one of the joint tenants. Once again the property is subject to attachment by that person's creditors.