Dr. Larner's Favorite Quotes:

Potential Problems with No Living Trust
And Joint Tenancy

  1. Probate Costs can run as high as 10% and tie up the property for two years.  This heightens sibling rivalry.
  2. Title passes as the instant of death occurs.  This can cause problems when two people die in a common event.
  3. The new joint tenant’s creditors and family have access to your assets.
  4. A gift tax may have occurred which requires filing of a federal gift tax return.
  5. You cannot sell or refinance real property without your children’s consent (and that of their spouses, if any).
  6. If the asset is your homestead, you will lose part of the homestead tax credit.
  7. Appreciated assets lose the benefit of the step up basis at death.
  8. If only one child is named, that child, when distributing to other children will be making gifts that are potentially taxable.
  
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