Doesn joint ownership avoid Probate?
Not really – it usually just postpones it. With most jointly owned assets, when one owner dies, full ownership does transfer to the surviving owner without probate. But if that owner dies without adding a new joint owner, or if both owners die at the same time, the asset must be probated before it can go to the heirs. Watch out for other problems. When you add a co-owner, you lose control. Your chances of being named in a lawsuit and of losing the asset to a creditor are increased. There could be gift and/or income tax problems. And since a will does not control most jointly owned assets, you could disinherit your family. With some assets, especially real estate, all owners must sign to sell or refinance. So if a co-owner becomes incapacitated, you could find yourself with a new “co-owner” — the court–even if the ill owner is your spouse.
Not really, it usually just postpones it. With most jointly owned assets, when one owner dies, full ownership does transfer to the surviving owner without probate. But if that owner dies without adding a new joint owner, or if both owners die at the same time, the asset must be probated before it can go to the heirs. Watch out for other problems. When you add a co-owner, you lose control. Your chances of being named in a lawsuit and of losing the asset to a creditor are increased. There could be gift and/or income tax problems. And since a will does not control most jointly owned assets, you could disinherit your family. With some assets, especially real estate, all owners must sign to sell or refinance. So if a co-owners becomes incapacitated, you could find yourself with a new “co-owner” – the court. Even if the ill owner is your spouse.
Not really. It usually just postpones it. When the surviving joint owner dies, or if both should die at the same time, the property must be probated before it can go to the heirs. Watch out for other risks, too. By adding a co-owner to your property, you may lose control; expose it to the other owner’s debts; and require your co-owner’s signature to sell or refinance. Also if the co-owner becomes incapacitated you may need approval from a third party, even if your co-owner is your spouse.
