Types of Joint Accounts

There are two types of joint accounts.

Joint Accounts with Right of Survivorship

This type of account is usually made between parents and children or between spouses. The owners of the assets are called tenants. The assets or the tenancy in this type of account is shared by two or more people at the same time, who equally own the account. When one of the account holders or a tenant dies, the share of that person automatically goes to the other remaining partners.

Joint Accounts with Tenancy in Common

In these types of accounts, the assets are usually subjected to probate fees and so they are not commonly used for the estate planning purposes. In this tenancy in common Joint Account the possession or the tenancy may or may not be shared equally. The share of one of the account holders or the tenant is passed on to his beneficiaries on his demise and not shared equally between the partners.