Issues with Joint Ownership with Siblings
Today, let’s talk about joint ownership with siblings. So a lot of people own property with their sibling on title and because the sibling is on title they will ask, “What’s going to happen upon death “of one of the people that owns it?”
Let’s just say it’s a two brothers owning a piece of property. One brother passes away, what happens? Well it all depends on how title is held. If title is held as joint tenancy or community property with right of survivorship, which it can’t happen because they’re brothers.
So in joint tenancy, the other brother will inherit it completely at that time. Now some people might not think that’s a bad outcome but that could result in a property tax reassessment. That could be a huge problem. So how do you do this without having that property tax reassessment?
Well if you go and do proper estate planning that could be done in a way that could potentially take away that property tax reassessment for two brothers or two siblings that own property. Let’s say, instead of joint tenancy, it is in tenants in common.
Well then, your will or trust will control what happens to that 50% and your brother could be partners with two people that are completely unrelated with no idea, it all depends on what you wanted.
And then there’s some people that say, “Well I’m joint tenancy but I want a tenancy in common.” Don’t touch title unless you have good legal advice because it could result in a property tax reassessment, which you are trying to avoid. So that’s my two cents on brothers and sisters and siblings owning property.
Do Your Due Diligence. Get the Information You Need.
In order to receive a full FREE one-hour consultation, you will need to sign up for the Estate Planning Masterclass by clicking the below link.