Q:

What are some of the hazards of joint tenancy?

A:

Quick Answer

Potential hazards and risks of joint tenancy include the vulnerability of inheriting or becoming liable for the debts or liabilities of the other tenants, explains the National Academy of Elder Law Attorneys. Joint tenants may experience setbacks within the business when one tenant's portion of the asset is threatened by debt collectors or divorce proceedings.

Continue Reading

Full Answer

People involved in a joint tenancy face challenges when one tenant dies, according to the National Academy of Elder Law Attorneys. Some states impose a community property law that modifies the tax treatment when one spouse of a joint tenant dies. In some cases, joint tenants lose certain benefits and funds that are often more costly than probate.

Assets owned in a joint tenancy are designated to the surviving tenant when a tenant dies, explains the National Academy of Elder Law Attorneys. An aging parent who has agreed to be a joint tenant may not be able to will assets to designated family members and friends because the assets are tied up in a co-signer agreement for the joint tenancy.

Joint tenancy laws are not governed federally; instead, each state stipulates how a joint tenancy must operate, according to the National Academy of Elder Law Attorneys.

Learn more about Real Estate
Sources:

Related Questions

Explore