Joint Tenancy

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Joint Tenancy

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

joint tenancy

A short version of the term “joint tenants with right of survivorship.”A method of taking title to real property;commonly used by husbands and wives,or by others,as an estate planning tool.The parties each own a fractional share and,at the same time,own the whole of the property.If a joint tenant dies,the others do not inherit that tenant's share,but simply see the removal of an obstacle in the way of taking everything.This is a subtle point,but it is the heart of the estate planning tool—no one inherits anything as a result of the death of the other joint tenant(s).As a result, the property does not pass through probate and cannot be used to satisfy claims against the estate of the decedent. However,

• The property may be includable in one owner's estate for purposes of calculating estate taxes. The rules are different depending on whether the parties were married or not.

• A joint tenancy may be destroyed if one owner transfers his or her interest to a third party. If that happens, the new owner becomes a tenant in common, not a joint tenant. If there were originally more than two joint tenants, the remaining ones may still be joint tenants as to each other's interest.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Joint Tenancy

A form of joint ownership under which two or more individuals own property. Each tenant has an undivided interest in the entire property. On the death of one of the owners, the survivors become the owner of the entire property. persons. Also see "Tenancy by the Entireties" and "Tenancy in Common."
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
Each partner owns half of the joint estate. If one partner has a debt, money from the joint estate can be used to pay this debt.
When a couple is married in community of property, the joint estate is divided in half when one person dies.
This can be useful if the partner who acted without proper consent has separate property which is not part of the joint estate. This property can be used to make up what was lost from the joint estate.
If one partner keeps acting without the consent of the other spouse, or is wasting property or money from the joint estate, what can the other partner do?
It's impossible to predict if and how estate taxes could change under a new president and Congress, but for 2016, at least, married clients with joint estates under $5.45 million still fall under the taxable threshold.
The introduction from October 9, 2007, of the ability to transfer any "nil rate band" (currently pounds 325,000 for tax year 2012/13) unused by a deceased spouse or civil partner to the survivor has also meant that most joint estates under pounds 650,000 escape IHT altogether.
Despite the availability of portability of the applicable exclusion amount between spouses, for those couples who engage in estate planning with anticipated joint estates in excess of the applicable exclusion amount, it is expected that their estate planning documents will continue, similar to those estate plans prior to the act, to contain dispositive provisions funding an irrevocable trust upon the death of the first spouse.
If your joint estates including the house are likely to top the pounds 650,000 mark and thus make you potentially liable to pay inheritance tax you could consider making your son a joint owner.
The introduction in October 2007 of transferable nil rate bands for spouses and civil partners has reduced the need for sophisticated planning in most cases where the value of joint estates is not more than 624,000 [pounds sterling].
After your deaths, your executor will be called on to present a set of accounts if the value of your joint estates appears to be near or above the inheritance tax threshold.

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