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Joint tenancy is widely used but misunderstood

Joint tenancy is probably the most common form of ownership for residences and bank accounts between husband and wife. But the fact that joint tenancy is widely used doesn’t mean everyone fully understands it.

Joint tenancy has a significant legal effect not only during the lifetimes of joint tenants but also when one of them dies. Each joint tenant, regardless of which one purchased or originally

owned the property, has the right to use and share in the income from the jointly owned property. In essence, the surviving joint tenant then owns the property free of any claim by the heirs of the joint tenant who died. This may not have been the intent of the original joint tenants because it bars descendants, heirs or beneficiaries and all but the surviving joint tenants from receiving any interest in the property.

Joint tenancy should not be considered as a substitute for a will. It doesn’t cover unanticipated contingencies. While it provides for a successor for a particular piece of property , joint tenancy doesn’t provide a comprehensive plan for the disposition of one’s entire estate as a will does.

Property held in joint tenancy does not pass under a will. An alternative way to hold property , if two or more persons are involved, is as tenants- in-common. Like joint tenants, tenants-in-common have the right to use and share in the income from the property. However, when a tenant-in-common dies, his or her interest does not automatically pass to the surviving co-tenant. It passes, instead, to the heirs or the beneficiaries under a will.

All joint tenants must agree to the sale or mortgage of real estate and to the sale of registered stocks and bonds. Anyone joint tenant may withdraw all or part of the funds in a joint bank account. A co-owner may redeem U.S. Treasury bonds.

In summary , joint tenancy is useful in the right cases, but it should not be considered a simple

solution to estate problems. The costs of preparing a will, tax planning and probate may be of little significance compared with the unintended problems that can arise from using joint tenancies indiscriminately. ,

An attorney can provide a full explanation of joint tenancy as it pertains to your situation.

For further infonnation about law-related issues, contact an Illinois State Bar Association member-lawyer in your area or visit ww.illinoislawyerfinder.com.

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