Owning property comes with manyups and downs. So itâ€™s no surprise that â€œjoint ownershipâ€ can be double thetrouble.
A recent article in Forbes reviews some of â€œThe Perils Of Joint Ownership.â€
Having two people named asowners, legally dubbed â€œjoint tenants with right of survivorship,â€ or â€œjointtenancyâ€ for short, is quite common amongst the elderly and families aftertransition. Unfortunately, unless the joint owners are spouses (the most commonform of joint ownership by far) it can quickly become a problematic scenario.
Imagine: homes, bank accounts,and other common assets being controlled by two independent minds withindependent agendas. The original article has a few examples, but anall-too-common scenario is the older relative and a younger relative owning theassets of the older relative in joint tenancy. If and when the younger relativerealizes that he or she has the power to use and enjoy the joint assets, thenproblems are not far behind.
What are some concrete concerns?The original article fleshes out three:
- Once a personâ€™s name is added to the title of property,it can be undone only with his or her consent.
- Property held in joint tenancy is immediately subjectto claims of each joint tenantâ€™s creditors.
- Joint tenancy can produce unintended results.
Sometimes joint tenancy is a valid option, and even aquite beneficial one. That noted, there are other safer alternative means toreach the same ends.
For more information on this and otherestate planning subjects, contact IdahoEstate Planning and schedule aconsultation. Remember,good planning is no accident.