There are numerous different ways that assets can be transferred after someone passes away. Some of them are more effective than others, and you have to be careful when you are making choices so that you do not make mistakes that yield unintended negative consequences. With this in mind, we will look at joint tenancy with right of survivorship in this blog post.
Co-Ownership of Property
The term “joint tenancy” can sound like something that is complicated, but in reality, it is a simple condition. A joint tenant is a co-owner of property. To provide a simple example, let’s say that you own your own home outright. You could add your daughter to the title or deed of the property, and she would become a joint tenant. She would own half of the property.
Right of survivorship would allow your daughter to assume ownership of the entirety of the property after your passing. This transfer would not be subject to the legal process of probate. On the other hand, if you were to maintain full, direct possession of the property and leave it your daughter in a last will, the probate process would enter the picture.
Your daughter would not assume ownership of the home until after the estate was probated and closed by the court. This will take eight months to a year at minimum, and more complicated cases can take longer.
The avoidance of probate is a positive when it comes to joint tenancy, but there are also some very significant negatives to take into consideration.
When you plan your estate, you are deciding on the way that you want your property to be distributed after you are gone. You do not necessarily surrender control of the property while you are alive.
Things are different when you add a joint tenant to the ownership registration of your property. The joint tenant would own half of the property right away, even while you are living. This can cause difficulties on various different levels.
For one thing, you would no longer own the property in its entirety, so you could not sell it without the cooperation of the joint tenant. Plus, the portion of the property that was owned by the joint tenant could be targeted if he or she was to run into legal, marital, or tax problems.
The loss of control can be avoided if you take different steps.
Learn More About Joint Tenancy
To obtain more detailed information about joint tenancy and the difficulties that can come along with it, download our in-depth special report on the subject. The report is free, and you can click this link to get your copy: Free Report on Joint Tenancy.
To Schedule a Free Consultation
If you are interested in the possibility of working with our firm after learning these facts, please select our “Workshops” tab to RSVP for a free estate planning workshop. At that workshop you will be offered a free one-hour consultation with an attorney: www.collinslawgroup.com/seminars/
- Who Will Administer My Estate If My Executor Cannot Serve? - July 30, 2021
- What You Should Consider When Creating a Trust - July 27, 2021
- How to Leave Assets for Your Minor Children in Your Estate Plan - July 21, 2021