joint ownership

(redirected from Jointly Held Property)
Also found in: Dictionary, Legal, Encyclopedia.

Joint Ownership

A situation in which two or more persons co-own a property. In other words, if two or more persons jointly own a property and one of them dies, the property does not become part of a decedent's estate; rather, the other owner(s) continue to own the property. A married couple may jointly own their house, for example. Likewise, two business partners may jointly own a business property. If two persons own an apartment complex and one of them dies, the whole of the complex belongs to the co-owner, and not the decedent's heirs. However, the decedent's liabilities may remain attached to this property and may be used to pay off creditors, even if the creditor had nothing to do with the property in question.

joint ownership

Ownership of an asset, such as property, by two or more parties. Joint ownership of property has advantages and disadvantages compared with individual ownership. For example, the property automatically passes to the co-owners upon the death of one of the other owners. Also, with one type of joint ownership, one owner can sell the property without the permission of the other owners. See also joint tenancy with right of survivorship, tenancy by the entirety, tenancy in common.

joint ownership

Ownership of property by two or more people or entities. It includes tenants in common,joint tenants with right of survivorship,tenants by the entireties,and community property interests.

References in periodicals archive ?
The remaining jointly held property, if any, would pass directly to the surviving spouse by operation of law, with no resulting estate tax because of the estate tax marital deduction.
Thus, couples no longer must divide their jointly held property to ensure the use of each of their estate and gift tax, and GST tax exemptions.
25] Regulations regarding the disclaimer of jointly held property were proposed in 1980[26] and finally promulgated in 1986.
It is no longer necessary for spouses to divide their jointly held property during life for estate planning reasons.
In view of the unlimited marital deduction adopted by the Act, the taxation of jointly held property between spouses will be relevant only for determining the basis of property to the survivor.
The IRS had argued that surviving spouses would be more likely to assert that the decedents had provided full consideration for jointly held property to achieve a full basis step-up, regardless of how the property was actually acquired.
Line 1b of Schedule E - Jointly Held Property, Qualified Joint Interests - indicates that only one-half of the total date-of-death value of these interests should be included in the estate regardless of when the property was acquired.
2518 regulations now allow a joint tenant to disclaim jointly held property not unilaterally severable on the same basis as joint property unilaterally severable.
Thus, while a full basis adjustment is allowed for community property even though only one-half of the property's value is included in the decedent's gross estate, only the decedent's share of jointly held property is subject to a basis adjustment and there would be no basis adjustment when the property is the separate property of the surviving spouse.
Consequently, a marital agreement between spouses to convert separate or jointly held property to community should not result in adverse tax consequences.
For example, property held in the name of the husband is considered to be the separate property of the husband and property held in joint tenancy form is considered to be jointly held property.
Commissioner (86-2 USTC 13,699) a case decided by the Court of Appeals for the Seventh Circuit, analogized the survivorship interest in jointly held property which was disclaimed to the lapse of a general power of appointment and found that the relevant time to disclaim was upon the death of the joint tenant.