Planning for what will happen to your money at the end of your life can feel overwhelming, but with some knowledge and careful planning, you can make things easier for your family or loved ones. Two common ways to simplify the transfer of your assets are Joint Accounts and In Trust For (ITF) Accounts. While both can help avoid probate, they work in different ways.

Joint Accounts

Listing someone as a Joint Owner on your account means they have the same access you do — deposits, withdrawals, transfers, opening certificates, and more — while you’re still alive. At Penlanco FCU, joint accounts are set up “with Rights of Survivorship,” meaning when one owner passes away, the surviving owner automatically inherits the account without going through probate.

This can be a good option for a spouse, significant other, or someone who helps manage your finances. But there are things to consider:

• A joint owner legally owns all funds in the account, regardless of who deposited them, and can withdraw everything at any time.
• Rights of Survivorship bypass your will, which may not match your intentions if you wanted the money divided among multiple heirs.
• If the joint owner faces legal judgments, garnishments, or levies, the account funds could be at risk.
• Removing a joint owner later can require their consent or closing the account entirely.
• There may be tax implications.

In Trust For (ITF) Accounts

An ITF account stays fully under your control during your lifetime, but you name one or more beneficiaries to receive the funds when you pass. Beneficiaries have no access while you’re alive. When the time comes, the account is closed and the funds go directly to them, avoiding probate.

Some benefits of ITF accounts include:

• Direct distribution to beneficiaries without court involvement.
• You keep complete control while you’re alive.
• Can name one or multiple beneficiaries.
• Offers more privacy and control than a joint account.

Things to keep in mind:

• Beneficiaries can’t access funds until your death.
• There may be tax reporting if the account earns income.
• They are less formal than a legal trust, so unclear details could lead to disputes.

Your Money, Your Choice

Choosing between a joint account and an ITF account comes down to your needs, relationships, and goals. Ask yourself:

• Do I want someone to help manage my finances now?
• Am I leaving money to more than one person?
• Is avoiding probate my top priority?
• Do I want more privacy or protection from misuse of funds?

With a little research and planning — and the advice of a tax professional — you can make the choice that best fits your situation. The sooner you decide, the more peace of mind you’ll have, leaving you free to focus on what matters most: enjoying life.