Joint Tenancy

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Joint Tenancy

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.

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."
References in periodicals archive ?
(3.) See Carrozzo, supra note 1, at 432-33 (discussing early history and attributes of joint tenancies).
521, 522-23 (1809) (distinguishing tenancies by the entirety from joint tenancies).
Many jurisdictions recognize tenancies by the entirety, tenancies in common, and joint tenancies. See id.
states revived the right of survivorship in joint tenancies. (63)
feature of joint tenancies. (82) Among these states were North Carolina in 1784 (83) and Pennsylvania in 1812.
For nonspousal joint tenancies, the entire value of the property is included in the estate of the first joint tenant to die unless the decedent's estate can prove that the survivor provided some consideration for his interest.(11) The following example illustrates a probate avoidance technique that seems to be occurring quite frequently.
For depreciable property, the downward basis adjustment which was illustrated above under "Spousal Joint Tenancies" (see Example 5) also applies to non-spousal joint tenancies.
With respect to spousal joint tenancies, prior to titling property in joint tenancy, each spouse first must be comfortable with the other's control of the property.
In reversing the Tax Court, the Court of Appeals agreed with the taxpayer/wife that the relevant transfer had occurred at the decedent's death and not upon creation of the joint tenancies. The Court of Appeals, relying on Kennedy v.
Thus, the period in which the taxpayer/wife of the decedent could disclaim the survivorship interest in the joint tenancies began to run in 1981 when the decedent died and not when the joint tenancies were created in 1977.
Again, the same rule should apply to similar arrangements where joint tenancies are held by persons other than husband and wife.
No taxable gift results from the creation of joint tenancies by husbands and wives, as a general rule, since the unlimited marital deduction of Sec.

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