You should certainly consider the source when someone is giving you advice, including in the estate planning realm. Sometimes people mean well, and they make suggestions, but they do not understand all of the facts. As a result, misconceptions can circulate, and they can lead to negative consequences. With this in mind, we will look at the drawbacks of joint tenancy in this blog post.
A Simple Solution?
Joint tenancy is pretty straightforward on the surface. A joint tenant is a co-owner of property. You could add someone to the title or deed of your home as a joint tenant with right of survivorship, and after you die, the surviving joint tenant would inherit the entire property.
This asset transfer would take place outside of the legal process of probate. If you never added a joint tenant, and you left the home to a loved one in your will, the inheritor would have to wait out the probate process, and it typically takes up to a year.
Given that, joint tenancy can look like an effective and simple estate planning solution. However, there is another side of the coin to consider.
You should be fully aware of some potential drawbacks if you are considering joint tenancy as an estate planning tool. You have to understand that the joint tenant that you add as a co-owner of your property would own half of the property immediately. You would no longer own the entire property, even while you are living.
The portion of the property that is owned by the joint tenant could be in play if the individual in question were to be the target of a lawsuit. It could also be at risk if the joint tenant were to go through a divorce.
Selling the property could be problematic as well, because you would only own half of the property in the eyes of the law.
These are a few of the problems with joint tenancy. If they concern you, there are safer ways to make efficient asset transfers after you pass away.
Free Report on Joint Tenancy
We have prepared a detailed report that takes a more comprehensive look at joint tenancy. This report is eye-opening to say the least, and you can access your copy through this website.
To get your copy of the special report, which is being offered free of charge at the present time, visit this page and follow the simple instructions: Joint Tenancy Report.
- Understanding the Benefits of Avoiding Probate - January 26, 2022
- 10 Reasons You Might Need an Estate Planning Attorney - January 5, 2022
- How to Gift to Your Grandchildren in Your Estate Plan - January 3, 2022