Does joint tenancy avoid a living probate?
No. Each joint tenant is required to sign documents on all major transactions involving joint property. If one of the owners is mentally disabled and incapable of handling financial matters, everything will have to wait until the probate court takes control. The court, in effect, becomes a joint owner and will continue to have a voice in managing the property until the disabled owner recovers or dies.
No. Each joint tenant is required to sign documents on all major transactions involving joint property. If one owner is mentally disabled and incapable of handling financial matters, everything will have to wait until the probate court takes control. The court, in effect, becomes a joint owner and will continue to have a voice in managing the jointly-owned property until the disabled owner either recovers or passes away.
No. Since there are usually two names on the title to joint tenancy property, you would think that the one joint tenant should be able to conduct “business as usual” if the other joint tenant is mentally incompetent. However, this is not the case. Joint accounts can be absolutely frozen–by law–if one of the owners is declared legally incapacitated. Joint account agreements can require that the account must be frozen if one joint tenant becomes incapacitated. As to other property, many transactions, by law or custom, require the signature of all joint tenants. If one of them is unable to sign because of incompetency, the probate court may have to be involved. It is usually better to take property out of joint tenancy with right of survivorship and transfer it into a Revocable Living Trust, which can then control the property without court intervention if the owner becomes incompetent. A durable power of attorney can be effective, but it is not uncommon for a third party to insist on a
