November 12, 2013 by Petrov Law Firm Conservatorships and Guardianships, Estate Planning, Family Legacy Building 2 comments
What is Joint Tenancy? Can I hold my property as “joint tenants with right of survivorship” to avoid probate? Are there any other problems with Joint Tenancy?
- Joint tenancy means that when the first owner dies, title automatically passes to the surviving owner.
- The simple answer is no. Here is why:
- If you hold property as Joint Tenants with your spouse, Probate proceedings will be initiated on upon the death of the surviving spouse. Additionally, holding property in joint tenancy with your spouse prevents your family from optimizing estate tax savings available to married couples.
- Yes. If you hold property in Joint Tenancy with someone other than your spouse, you may cause the “unintentional disinheritance” of your children. This can occur because, on your death, the surviving Joint Tenant has no obligation to provide for your children or your spouse because they hold the property outright.