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 Dear Tax Talk:
I am getting old, and making a will. My question is, in place of putting my son's name in the will for my bank accounts, can I just add him as having joint custody to my accounts (I have five accounts, around $100,000 in each)? What are the problems in doing this? Am I making it worse for him in regard to taxes?
-- David
 Dear
David,
Just because you're getting old doesn't mean you need a will; you needed one a long time ago
with all that money in the bank. As Bankrate discovered in a
recent survey, three-quarters of Americans say everyone should have a will, but more than half don't have one. Not only is a will important for estate tax planning, it's also important to make sure that your last wishes are known, avoiding a challenge to the will.
You can certainly add your son to your accounts as a joint holder. The designation will not create a taxable gift to your son, if that is not your intention. But as a joint account holder, he may gain more rights in your lifetime than you really want to relinquish until your death. All family relationships suffer at times -- it is hoped yours won't at a time when you are incapacitated.
An alternative designation for the accounts that would allow you to retain full rights and also avoid probate would be to add your son as a beneficiary on the account through the designation "paid on death." Either way, the tax outcome for your son will be the same; however, the issue of property rights is clearer through the "paid on death" designation.
Because your estate is considerable, you should seek further professional advice on your will, possible trusts and a durable power of attorney should you become incapacitated.
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