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Normally when property is purchased jointly there is a survivorship clause, meaning that on the death of one of the joint owners, their share in the property automatically passes to the survivor(s).
Utilizing a revocable trust is the best way for a married couple to take title. Titling property in your trust avoids probate upon the death of both the initial and surviving spouses and preserves the capital gains step up for the entire property on the first death.
In some states, a TOD or JTWROS beneficiary designation is even allowed for real property. When an account or asset has a TOD or JTWROS designation, the right of survivorship precedes any beneficiary designations made in a will or trust.
The dangers of joint tenancy include the following: Danger #1: Only delays probate. Danger #2: Probate when both owners die together. Danger #3: Unintentional disinheriting. Danger #4: Gift taxes. Danger #5: Loss of income tax benefits. Danger #6: Right to sell or encumber. Danger #7: Financial problems.
Each joint owner has an undivided right to possess the whole property and a proportionate right of equal ownership interest. When one joint tenant dies, his/her interest automatically passes on to the surviving joint tenant(s).
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However, it also poses certain risks. Key Characteristics. Joint tenancy is most associated with its right of survivorship. Advantages. Ability to Avoid Probate. Rights to Rent and Profits. Right to Survivorship. Disadvantages. Exposure to Creditors. More Responsibility.
Joint Tenancy With Survivorship In this arrangement, tenants have an equal right to the accounts assets. They are also afforded survivorship rights in the event of the death of another account holder. In simple terms, it means that when one partner or spouse dies, the other receives all of the money or property.
Utilizing a revocable trust is the best way for a married couple to take title. Titling property in your trust avoids probate upon the death of both the initial and surviving spouses and preserves the capital gains step up for the entire property on the first death.
Spouses typically acquire title as tenants by the entireties, which only applies to spouses. Sometimes you will see a couple who acquired the property before marriage. In some states, a pre-marital joint tenancy automatically becomes tenants by the entireties upon marriage.
If property is to be used as a primary residence, I generally advise that title be vested in the individuals names. This provides the buyers homestead protection from judgment creditors, and also allows the buyers to take advantage of the real property tax benefits associated with the homestead.

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