I
often see older people with other peoples’ names on their property as
co-owners. Legally, the ownership is
joint tenants with right of survivorship, meaning that upon the death of one
joint tenant, the surviving joint tenant becomes the sole owner of the
property.
Owning property comes with many
ups and downs. So it’s no surprise that “joint ownership” can be double the
trouble.
A recent article in Forbes reviews some of “The Perils Of Joint Ownership.”
Having two people named as
owners, legally dubbed “joint tenants with right of survivorship,” or “joint
tenancy” for short, is quite common amongst the elderly and families after
transition. Unfortunately, unless the joint owners are spouses (the most common
form of joint ownership by far) it can quickly become a problematic scenario.
Imagine: homes, bank accounts,
and other common assets being controlled by two independent minds with
independent agendas. The original article has a few examples, but an
all-too-common scenario is the older relative and a younger relative owning the
assets of the older relative in joint tenancy. If and when the younger relative
realizes that he or she has the power to use and enjoy the joint assets, then
problems are not far behind.
What are some concrete concerns?
The original article fleshes out three:
- Once a person’s name is added to the title of property,
it can be undone only with his or her consent. - Property held in joint tenancy is immediately subject
to claims of each joint tenant’s creditors. - Joint tenancy can produce unintended results.
Sometimes joint tenancy is a
valid option, and even a quite beneficial one. That noted, there are other
safer alternative means to reach the same ends.
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Reference: Forbes (June
14, 2013) “The Perils Of Joint Ownership”