Does joint tenancy avoid a death probate?
Yes and no. In the case of a husband and wife who own their assets in Joint Tenancy, there is no death probate when the first spouse dies because title passes automatically to the surviving joint tenant spouse. However, when the surviving spouse dies, there will be a complete probate on the entire estate. The fact that joint tenancy ownership avoids a death probate at the first spouse’s death is a small reward for the many other disadvantages of joint tenancy ownership. It can lead to huge unexpected liability when parents and children own assets together. It can create unintended beneficiaries and often causes gift and death tax problems. For these reasons, estate planning experts agree that joint tenancy is a poor planning tool.
Well, the answer is yes and no. In the case of a husband and wife who own their assets in joint tenancy, there’s no death probate when the first spouse dies because title passes automatically to the surviving joint tenant. However, when the surviving spouse dies, there will be a complete probate on the entire estate. The fact that joint tenancy ownership avoids death probate at the first spouse’s death is a small reward for the many other disadvantages of joint tenancy ownership. It can lead to huge unexpected liability when parents and children own assets together. It can create unintended beneficiaries and often causes gift and death tax problems. For these reasons, estate planning experts agree that joint tenancy may be the poorest estate planning tool.
Yes and no. Joint tenancy avoids the probate when the first spouse dies, but does not avoid probate when the second spouse dies. It does not avoid probate if there is a simultaneous death. The fact that joint tenancy avoids probate on the first spouse’s death is small consolation for the many problems created by its use. In fact, joint tenancy may be the worst possible probate-avoidance method. It leads to loss of control. It creates the real possibility of unintended heirs. It creates gift taxes among non-spouses. It is great for creditors, and it creates death tax problems.
