Problems In Joint Tenancy, Right Of Community And Survivorship Property

Jones arrived to see me following the loss of life of her hubby because she wanted help on the distribution of his property. She had gone to her bank or investment company to withdraw one of her CDs (certificates of deposit) in the name of both her and her husband. Although the accounts is at both their brands, it didn’t designate right of survivorship. That’s the first problem with joint tenancy: The fact that the right of survivorship is available because both names can be found on the record; the possession must actually reveal a right of survivorship. If you own real estate, you might be familiar with joint tenancy property.

That’s the upside to what’s known as right of survivorship. It removes probate on the loss of life of the first partner. Listen closely; Revocable Living Trusts can remedy issues that are inherent with joint tenancy of property, right of survivorship, and community property. Although some individuals use joint tenancy to avoid probate, the problems associated with wills and the probate process can still catch up with them. However, property in joint tenancy doesn’t avoid probate in these two events: a common disaster in which both parties are killed or after the death of the next spouse.

In both instances, the assets must proceed through probate. Only a revocable living trust bypasses the delays and costs of probate. Next, she brought out three deeds to her residence. The first deed demonstrated that she and her husband had owned the house as joint tenants with right of survivorship. However, in 1981, that they had transferred the property out of their titles to an authorized and then back into their names.

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Unfortunately, they transferred the property back as community property. Mrs. Jones didn’t remember much about the transfer. She only understood that, in 1981, she and her spouse became involved in an investment they thought might boost the size of their property. To lessen capital gains taxes on another sale, their lawyer had recommended they take their property out of joint tenancy and title it as community property. The couple hadn’t realized that community property doesn’t avoid probate.

The attorney should have recommended they use a revocable living trust. Currently, a new method to hold name is available: community property with right of survivorship. It’s uncomfortable to inform a widow that her recently deceased husband’s property now owned half of her home. We had to probate this estate to transfer fifty percent of the home to her, the only heir of the estate.

I was glad for Mrs. Jones that her case took the shortest amount of time I’d experienced to complete a probate: only five . 5 months. Mrs. Jones arrived to see me after the probate process was completed back. She was determined that, upon her death, all her assets could be distributed to her children and never have to go through probate.