Joint tenancy with right of survivor ship?

[steffb503]

What is the name of your state (only U.S. law)? In NY does this mean solely at time of death or does the party to whom the property will be at time of death has any rights to the property? Any say in the sale of the property or has a right to any money at time of sale?
Thanks

 

[LdiJ]

What is the name of your state (only U.S. law)? In NY does this mean solely at time of death or does the party to whom the property will be at time of death has any rights to the property? Any say in the sale of the property or has a right to any money at time of sale?
Thanks

That is a true joint ownership. Both owners would have to agree to a sale, and both owners would be entitled to the money from the sale...split 50/50. The "right of survivorship" means that if one of the joint owners passes away, the house then belongs 100% to the surviving owner.

 

[FlyingRon]

A joint ownership can be converted to tenancy in common unilaterally by either party as well. They could dispose of their share unilaterally if anybody would buy such a thing or they could just give it to someone else.

 

[LdiJ]

A joint ownership can be converted to tenancy in common unilaterally by either party as well. They could dispose of their share unilaterally if anybody would buy such a thing or they could just give it to someone else.

Are you sure it can be changed unilaterally? If so, a lot of people preying on elderly parents could do some serious damage.

 

[steffb503]

So you are saying if I put a house in Jtwros with my adult child so she gets my house when I die, she can anytime without my knowledge or consent sell her share to someone else?

 

[steffb503]

Also If I am sole owner and decide to add my adult child , can I also decide to remove her?

 

[LdiJ]

Also If I am sole owner and decide to add my adult child , can I also decide to remove her?

Yes, you can add your child to your house.
No, once you have added her, you cannot remove her unless she agrees.

You will also need to file a gift tax return for the value of 1/2 of the house if you put her on it. You won't have to pay any actual tax unless you are over your lifetime exclusion for gifting (million plus) but you will have to file the return.

Also, it would likely be better for your daughter to inherit the house rather than you putting her name on it, unless she would plan to live there. If she inherits the home she gets a stepped up basis and therefore won't pay any capital gains tax on the proceeds if she sells it right away. If you put her name on it ahead of time, she gets your basis, and therefore will have to pay capital gains tax on some of the money.

All in all, you really are not doing your daughter any favor by putting her on the house, again, unless she would plan to live there.

 

[justalayman]

Are you sure it can be changed unilaterally? If so, a lot of people preying on elderly parents could do some serious damage.

Yes it can be changed unilaterally. A tenancy in the entirety (for those states that recognize such) is the only type of ownership that cannot be terminated unilaterally.

 

[justalayman]

So you are saying if I put a house in Jtwros with my adult child so she gets my house when I die, she can anytime without my knowledge or consent sell her share to someone else?

That is Correct

 

[steffb503]

Thanks guys

 

[FlyingRon]

As Justy reinforced, joint tenancy can be terminated at will by any party. This is not like joint ownership of a car. There's on "AND" implicit in the property.

People "prey" on the elderly or the otherwise stupid because people have a misconception that being on the deed is some sort of club or estate planning. When you deed property to someone REGARDLESS OF THE TENANCY you are giving them immutably HALF (or whatever the deed states) of the property. WROS has no meaning other than if the property is still jointly held at the death of one of the tenants. It doesn't HOLD things until that time.

As stated, tenancy by the entirety precludes one party doing anything to break the tenancy (other than getting a divorce or dying).
The states that permit this tenancy all restrict it to married couples to my knowledge.