IJ Losing Control with JOINT OWNERSHIP 
Joint ownership is probably the most commonly used estate plan, although you may not have 
thought of estate planning at the time you purchased the asset. If you are married, you and your 
spouse probably own most of your assets jointly. After all, that seems like the most fair thing to 
do, doesn't it? 
The type of joint ownership most people use, and the one we will be discussing here, is called 
"joint ownership (or joint tenants) with right of survivorship." A lot of people have come to rely 
on joint ownership as an alternative to wills and probate. Some professionals even recommend 
it as a way to avoid probate. 
Doesn't joint ownership avoid probate? 
Not really-usually it just postpones it. When one joint owner dies, ownership will transfer to the 
other owner without probate. But when the surviving owner dies without adding another joint 
owner (which frequently happens), or if both owners die at the same time, the asset must be 
probated before it can go to the heirs. 
Are there other problems with joint ownership? 
Joint ownership probably causes more problems than any other estate plan. For example, you 
could unintentionally disinherit your own family, as shown in the illustration below. If you die 
first, you have no way of controlling what happens to the asset. Jointly owned assets are not 
controlled by your will because the transfer takes place immediately upon your death. The asset 
will be owned by the surviving owner, who can do whatever he/ she wants with it. 

There are other risks. It's very easy to add a co- 
owner. But taking someone's name o/fthe title 
can be very difficult; if your co-owner doesn't 
agree, you could end up in court. There could be 
gift and/ or income tax problems. Your chances 
of being named in a lawsuit and of losing the 
asset to a creditor are increased. If your estate 
is larger, you could be limiting your tax plan- 
ning options. And if your co-owner becomes 
incapacitated, you could find yourself with a 
new "co-owner"-the court! 

Why would the court get involved if my co- 
owner is incapacitated? 
Many people mistakenly think that joint 
ownership of all assets is the same as a joint 
bank account, on which either owner can sign 
checks, make deposits and withdrawals, ete. 
But on many assets, especially real estate, all 
signatures are required to transact business. 
If you need your co-owner's signature to sell 
or refinance and he/ she is incapacitated, you'll 
have to ask the court to appoint someone to 
act for your co-owner-even if the ill owner is 
your spouse. And, remember, once the court gets involved, it will usually stay involved to protect 
that owner's interests. 
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BOB &SUE 
JOINT OWNERS 
• 
•• 
BOSOIES 	I~ 

SUE INHERITS 
SOB'S SHARE 
• 
SUE PIES 
• 

BOB'S FAMIkY 
LOSES HOM:£: 
SUE'S F4,Mll.Y 
INHERITS HOME 
When a joint owner dies, his/her share immediately 
goes to the other owner. This can cause you to 
unintentionally disinherit your own family. 
If/oint otunersbip is starting to sound complicated, that's because it can be. Just remember that whenever you have a 
co-owner, you could easilY lose contro!. 
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