looking for advice: working with a HNW client for whom I've suggested retitling of accounts to Joint (JTWROS) as part of his estate strategy (apart from a trust, will, etc.).

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My question is should he retitle to Joint or just update beneficiary designations? Client net worth is above the $5.5mm spousal and dependent exclusion.

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If the accounts are maintained separately (assuming H & W have individual accounts) you could lose a partial step up in basis if you combine them and if there are appreciated assets. Might be best to update bene's, TOD's, etc.

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He can gift unlimited amount to spouse and by filing an estate tax return at his death (form 706 I believe) the spouse can reserve his 5.4 million and still receive her 5.4 million in estate tax exemption. That trick is reciprocal if she does first. Leave bene as the wife

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Dont practice law or tax accounting without a license. Dont blow up his current plan without consulting with his current advisors. Otherwise they may blow up your plan and relationsjip up.

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I'd just update the beneficiary designations, but others may have a different opinion.

Good point AXA. But as of now all the money is in his name, out of convenience.

Fair point. But he has no other advisors, which is why I even brought this up to him in the first place. Anyway I spoke to an expert who explained that Joint should be considered a temporary measure, living trust should be the ultimate goal.

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