When to use joint tenancy for estate planning?
Indeed for many years, joint tenancy arrangements have been used by families and very close friends. Most often they are used for home ownership or for financial assets such as bank accounts and investment accounts. Indeed, other than a will, this type of arrangement is probably the commonest form of estate planning.
What are the pitfalls of joint tenancy in common?
The primary pitfalls are the need for agreement, the potential for assets to be frozen, and loss of control over the distribution of assets after death. Tenancy in common is an alternative to joint tenancy that avoids some of its drawbacks. Joint tenancy with rights of survivorship (JTWROS) is a type of account that is owned by at least two people.
Is it necessary to contest the joint nature of an asset?
Deciding whether or not to contest the joint nature of an asset, or an unfavorable estate planning document, is not always an easy one, and certainly should not be made lightly. Court battles seeking to set aside documents or transactions can be costly and time-consuming. They can also tear families apart.
Can a joint tenant transfer an asset to someone else?
This is extremely and dangerously significant because any Tenant can transfer the asset to someone other than the other Joint Tenants WITHOUT PERMISSION from any of the Joint Tenants. Joint Tenancy disinherits all other heirs, except the remaining Joint Tenant.
How are assets protected in a joint tenancy?
JOINT TENANCY. Possible exposure of the assets to the creditor or the other Tenants. This is extremely and dangerously significant because any Tenant can transfer the asset to someone other than the other Joint Tenants WITHOUT PERMISSION from any of the Joint Tenants. Joint Tenancy disinherits all other heirs, except the remaining Joint Tenant.
What does joint tenancy mean in real estate?
In the United States Joint Tenancy is common for real estate, bank accounts, brokerage accounts, and other assets. Husband and wife are both named on the deed to their home. This is a very bad idea.
Deciding whether or not to contest the joint nature of an asset, or an unfavorable estate planning document, is not always an easy one, and certainly should not be made lightly. Court battles seeking to set aside documents or transactions can be costly and time-consuming. They can also tear families apart.
This is extremely and dangerously significant because any Tenant can transfer the asset to someone other than the other Joint Tenants WITHOUT PERMISSION from any of the Joint Tenants. Joint Tenancy disinherits all other heirs, except the remaining Joint Tenant.