Joint Tenancy

Putting Assets in Joint Tenancy

When should someone else be on accounts?

Advantages:

• Avoid Probate
• Convenience
• Medicaid Planning
• Safe Deposit Box

Disadvantages:

• Loss of Control
  • Either owner may remove funds from accounts
  • Real Estate: viewed as gift/loss of step up in basis
  • Life estate: available resource for Medicaid
  • Joint tenants must concur for sales/management of real property
• Estate Planning consequences
• Tax consequences
• Subject to creditors/liens of joint owner
• Joint owners can be sued (i.e., motor vehicles)

Alternatives to Joint Tenant Designation (JTTEN)

• POD Accounts – “Pay-On-Death”
  • Bank Accounts
  • Avoids probate
  • Does not avoid creditors
  • Multiple beneficiaries
• TOD Accounts – “Transfer-On Death”
  • Securities
    • Each security company has different rules
• TODD – “Transfer-On-Death-Deed”
  • Real Estate
    • Does not avoid creditors
    • Avoids probate
    • Allows for multiple beneficiaries
    • Must be recorded by county clerk
    • Simple revocation/changes
• Trusts
• Powers-of-Attorney