• 18
  • May
    2010

Many people want to pass property to a non-spouse. Often, parents want to pass property to children quickly and efficiently, and outside of the probate process. In order to do this, a common course of action is to use joint ownership with the right of survivorship.

So if, for example, parent and child have joint ownership with the right of survivorship in a family vacation home, when the parent dies the child will own the vacation home? And they will have it without going through probate? Yes, they will.

But that isn't the only way to do it, and it isn't necessarily the best way. 

Joint ownership has some risks. The right of survivorship is attractive, but it also gives each owner an equal undivided interest in the entire property. In other words, by creating joint ownership, you are giving up full control of the property. You also expose the property to creditors of all co-owners, so if any one of them gets into financial trouble, all co-owners could lose their property. And, if you change your mind about who you want to get the property, you are going to need the co-owner's approval.

One solution is, instead of putting the property in joint ownership, use a revocable living trust. You name the person you want as the beneficiary, and you can revoke that decision at any time. The person you name will get the property, but you can avoid the potential problems of joint ownership.

  • Source: Bradenton Herald "Is joint property the best solution?" April 20, 2010