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By the way, other posters addressed federal inheritance tax, but be aware that many states impose their own tax. In New Jersey where I live, accounts that are listed as JTWROS are not considered to be part of the estate for NJ inhertitance tax purposes. But I'm sure every state is different.

Be careful here. First, there is no such thing as a federal inheritance tax. There is a federal Estate tax. NJ has both an estate tax AND and inheritance tax. The distinction is that Estate Taxes are levied against the value of an estate. NJ's Inheritance tax is levied against certain transfers of assets from an estate to a beneficiary. That is, certain beneficiaries (such as a spouse) are exempt from the inheritance tax, other beneficiaries are subject to varying levels of taxation on their inheritances. I don't recall which, if either, of the two NJ taxes exempts JTWROS accounts.

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