What is joint tenancy and will it avoid probate?
Joint tenancy means two or more people hold title to an asset with the right of survivorship, meaning that if one of the owners dies, that person’s share in the property is automatically given to the remaining owner, without probate. However, there are disadvantages to holding property in joint tenancy, such as income tax consequences, losing control over the property, since the consent of the joint owners must be obtained in order to sell the entire property and the possibility of losing the property to creditors as a result of the debts of the joint owner. For example, many people think they can “beat the system” by simply adding a daughter or son to their property and then they have a way to transfer their assets to their beneficiaries without going through probate. Actually, by adding a child to your home may result in your having made a taxable gift. Additionally, if you are considering adding your child’s name to your property, you should be aware that if your child is later divo
