Joint tenancy is a way of owning property where two or more people hold equal ownership rights to the property. A key feature of joint tenancy is the right of survivorship. This means that if one owner passes away, their share automatically transfers to the remaining owner(s) without the need for probate. This can simplify things during a difficult time, as it bypasses the court process and keeps the property in the hands of the surviving owner(s).
In estate planning, joint tenancy is often used to ensure that assets like homes, bank accounts, or investment properties seamlessly transfer to a spouse or partner. However, while joint tenancy has its conveniences, it’s important to consider its long-term effects. Once someone is added as a joint tenant, they own an equal share of the property, and any decisions about the property—such as selling or refinancing—must be made jointly.
Additionally, joint tenancy does not offer the flexibility of other estate planning tools like a trust. For example, it may limit your ability to control how assets are distributed after the last joint tenant passes away. If you want more control over how and when your assets are passed on, or if you have concerns about protecting those assets from creditors or taxes, you may want to explore other options.
Before making decisions about joint tenancy as part of your estate plan, it’s important to understand how it aligns with your broader goals. Whether you’re concerned about simplicity, control, or tax implications, consulting with an estate planning attorney can help you find the best approach for your unique situation.
If you’re considering joint tenancy or other estate planning options, reach out to TrustCounsel for guidance. Our experienced team of attorneys are here to discuss the right strategy for you and your family. Visit our contact page to find the office nearest to you or fill out our online form, and we’ll reach out promptly to schedule a consultation at your convenience.