Will I have a Probate if I own real property
in Joint Tenancy?
NO.
But the tax ramifications of allowing this property to pass by way of joint tenancy
may have a surprising effect. At your death, the joint tenant can "clear
title" by recording an "Affidvait - Death of Joint Tenant". This
document, with an attached certified copy of your death certificate will clear
the title for the remaining joint tenant(s) to sell the property. However, only
the portion owned by the decedent will have what is called a "step-up"
basis in value. The remaining portions will be subject to payment of a tax based
upon the original purchase price of the property and the sales price. If the property
is transferred at the person's death, the entire property will receive the "step-up"
basis, i.e., the value of the property at death instead of what it was originally
purchased for.
Another
draw back to placing someone on title as a joint tenant is the risk of a creditor
of the person you place on title placing a lien on the property for payment of
a debt which has not been paid by the new joint owner of the property.
Always
obtain legal assistance to understand your options before you decide to add additional
joint tenants on your property.
Recent
articles published on this topic:
*Planning For Your Pet's Welfare
Magazine
of Santa Clarita - February, 2008
*Good Samaritans - Beware of Law
Santa
Clarita Valley Signal 9-01-2006
Magazine of SCV - Oct.- 2006
What Happens
to Debt When a Parent Dies - SCV Signal 3-31-2006
The
information here is presented as a guide. Please consult an attorney for specific
advice.