Why is joint tenancy with right or survivorship a poor way to title my marital assets?
A. Most people seem to have a love affair with joint tenancy. For a husband and wife whose joint estate does not exceed their $2 million combined exemption amount ($1 million for individuals), joint tenancy may be adequate for estate tax purposes. It does not, however, help avoid probate upon the death of the surviving spouse or upon the simultaneous deaths of both spouses. For couples having estates larger than the combined exemption amount, this type of joint tenancy can subject a family to federal estate taxes that could have been easily avoided. This is because the spouse who dies first cannot use his or her exemption amount. If you hold property jointly with a spouse, at your death only your 50 percent of the property may receive a “step up” in basis (cost basis “stepped up” to fair market value at date of death). This means that if your spouse desires to sell the property after your death, he or she may have to pay unnecessary capital gain taxes on his or her 50 percent of the pr
