Thinking about buying in joint tenancy? This is a way of owning real or personal property with two or more individuals. Here’s a few things you should consider to know if this is the right path for you to take in your purchase. Buying in joint tenancy means you and the other individuals will have joint tenancy in the home and own equal shares in the property.
Joint Tenancy Advantages
Owning a joint tenancy property can have advantages when one of the tenants passes away. The property will then fall into the hands of the other tenant. This can help the property not be able to fall into the estate recovery claims. The title of the home will automatically be transferred to the surviving tenant.
Joint Tenancy Disadvantages
If one of the tenants is subject to a civil lawsuit the property could be forced into a complete sale of the entire property. Another issue that could come up in the property is in a joint tenant account either person could withdraw from the account at any time. Even with the other party not there. These properties could also be taxed as a gift tax liability unless you and the other tenants are married.
You should also be aware that there may be unintended consequences for owning property in tenancy. It could cause a child or loved one to be disinherited if the joint tenancy property is not subject to the terms of the will you have drawn up. Joint tenancy property may also become part of the claims of a surviving spouse and children if the assets of the decedent’s probate estate are insufficient. This is why I recommend speaking to a lawyer or financial advisor to avoid any surprises down the road when you are considering buying a property in joint tenancy.
Equal Responsibility In Joint Tenancy
Whether this is with your business partner or you are a married couple, you should have equal responsibility when it comes to sharing tenancy. Both parties should have equal liabilities when it comes to the property. Also, not one tenant should take out debts on the property without the other people involved knowing. This should be a team effort when it comes to owning and managing this property.
Final Thoughts And How Can I Help?
In Crested Butte, the skiing is great, the scenery is awesome, and the people are warm, friendly and real. Come to Crested Butte to relax and enjoy yourself with family, friends and clients…, then go find a restaurant, bar or shop in town. Sit for a while, relax and enjoy striking up a conversation with a new friend – it could be the beginning of your journey and adventure.
I am consistently among the Top Real estate agents in Crested Butte and among the top 1% of all Coldwell Banker Agents in North America, and I strive to exceed client expectations. If you are considering me to represent you, I would appreciate the opportunity to earn your business (or that of a friend you think I could help).
Visit www.chriskopf.com. Phone: (970) 209-5405, or Chris.Kopf@CBMP.com
If you have an interest in Crested Butte Real Estate and would like to start a conversation about Crested Butte homes for sale, condos or land in the Crested Butte area, call me.
Global Luxury Property Specialist
Coldwell Banker Mountain Properties
mobile phone: (970) 209-5405