<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by roesler:
My family has been in the practice of going in together as partners on houses, and holding the title Joint with Right of Survivorship. Recently (as all us siblings are aging) we got worried about what happens if one of us incurs a big medical bill, goes in a nursing home on Medicaid, etc. If I own a house with one other family member, and the house is held JWROS, can the house be taken for payment of that other person's medical bills? What about other debts? I've heard that JWROS bank accounts can be attached but no one is sure about property. If I just refuse to co-operate, the other person dies and the house is all mine, what can the debtor do about it? <HR></BLOCKQUOTE>
You have valid concerns and based on your hypothetical situations, title held in joint tenancy would not offer the best protection. Properties should be held in trust. Property held in joint tenancy can be liened and foreclosed on to collect debts by any of the joint tenants, but only the indebted joint tenant's share is taken by the debtor.
Ex: you and your brother own a home free and clear valued at $100K. You each own half. Your brother is behind on numerous payments such as medical bills, credit accounts, child support etc. and a judgement is entered against him in the amount of $75K. The debtor can foreclose on the home to pay off the judgement but would only get his share which is $50K. You would get your share.
If one tenant dies, the other tenant automatically owns the property due to the right of survivorship. At this point any outstanding debts not collected by creditors of the deceased must be presented to the estate.
There are concerns with holding title by way of joint tenancy if the other tenants: get divorced, file bankruptcy, die first, are incapacitated, have huge medical bills etc. You should seek legal advice from a trust and estate attorney.
