Joint Accounts Held as Tenants in Common: A Tool to Avoid Litigation

Perhaps one of the most litigious issues in the area of estate law is the question of whether a joint account passes on survivorship when one of the owners dies, or whether the survivor holds the balance of the account in trust for the deceased’s estate. 

Joint ownership of bank accounts between parents and children is common and can be a convenient tool to help children to manage their parents’ affairs during their lifetime.  However, when a parent adds a child as a joint account holder, the parent may expect the child to share the balance of the account with his/her siblings following the death of the parent.  When the parent’s intention has not been made clear, litigation can ensue.