There are numerous ways to get assets into the hands of your loved ones after you pass away. Some solutions may sound ideal on the surface, but there can be some drawbacks lurking. With this in mind, we will look at the matter of joint tenancy in this post.
Co-Ownership of Property
You can add a co-owner to the title of property that you own. This individual would become a joint tenant.
Let’s say that you want your daughter to inherit your home after you pass away. You make your daughter a joint tenant, and she would own half of the property as soon as you add her to the title of your home.
There is a legal process called probate that comes into play if you pass away while in direct, sole possession of property. If you were to leave your home to your daughter in your will, the transfer would be subject to the probate process.
Though the process of probate is in place to provide oversight, there are some negatives that go along with it. Perhaps the biggest problem is the time consumption.
The heirs to the estate do not receive their inheritances until the process of probate has run its course. In simple cases it can take perhaps nine months in most jurisdictions, and this is a significant length of time. There are more complex cases that can be hung up in probate for multiple years.
Property that is held in joint tenancy does not have to go through the probate process. As a result, your daughter would inherit your portion of the home after you pass away, and the transfer would not be subject to probate.
The above can sound like a great solution, but there are some difficulties that can enter the picture if you add a joint tenant to your property. You have to remember, the joint tenant becomes owner of half of the property immediately. As a result, you could not sell the property without the approval of the joint tenant.
Plus, the portion of the property that is owned by the joint tenant would be in play if the joint tenant was to run into legal or financial problems. This would include tax delinquencies. In essence, the financial problems of the joint tenant would become your problems as well.
There are safer and more comprehensive solutions that can be implemented if you want to facilitate efficient asset transfers.
Free Report on Joint Tenancy
If you would like to obtain some more in-depth information about joint tenancy, download our special report. The report is being offered to our readers free of charge, and you can access your copy through this page: The Trouble With Joint Tenancy.