DOESNT JOINT OWNERSHIP OF ASSETS AVOID PROBATE?
No, it usually just postpones it. When one of the joint owners dies, ownership will transfer to the other without probate. But when the “second” 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. When you add someone as a co-owner of your property, you lose control. You expose it to the other owner’s signature to sell or refinance, and if he/she is incapacitated, you’ll have to get approval from the probate court-even if your co-owner is your spouse. And, if your joint owner is not your spouse, you run an additional risk of your assets being exposed to judgment creditors of the joint owner’s. Further, you lose the full “step-up” in basis, meaning the current fair market value at the date of death. Only the decedent’s share of the property is stepped-up to the current fair market value. If the property is appreciated, the survivor will be subject to capital gains taxes on the appreciation of th
