What happens to joint accounts when one spouse dies? If the joint account is titled the most common way—that is, joint tenants with rights of survivorship—then any assets in the account should pass automatically to the surviving spouse.
A joint account is not just a bank account. Such ownership can apply to a house, investment accounts, even business interests.
If a joint account is part of your long-term estate plan, it is imperative that the assets are property titled, and that both spouse's Social Security numbers are reflected in the title for proper tax reporting.
When there is a joint account, half of it may become taxable at the death of the first spouse. That's because the surviving spouse is inheriting half of the asset. That is the reason that some couples find it more advantageous to own certain of their assets in their own names.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/