Joint Tenancy with Right of Survivorship (JTWROS) — Poor Man's Estate Plan

JTWROS means each co-owner holds an undivided interest and, at death, the decedent's share passes automatically to the survivor(s) by operation of law — no will, no probate, no court. It's free and instant. The tradeoffs are substantial: (1) only the decedent's half steps up in basis in common-law states (vs 100% step-up for community property or a community property trust), (2) adding a non-spouse joint owner is a completed gift of half the value, potentially requiring Form 709, (3) the joint owner's creditors, lawsuits, and divorcing spouse can reach the asset, (4) it overrides your will and can accidentally disinherit children from a prior marriage, (5) the survivor takes it outright with no trust protections. Use it for spousal bank accounts; avoid it for appreciated real estate and for adding adult children.