Joint Ownership: A Source Of Expensive Trouble

Joint ownership of property is increasingly a source of family disputes.  Older people commonly put assets into joint ownership with their children hoping to minimize probate fees or other taxes.  A recent decision of the Ontario Superior Court, Schwartz v. Fuss, shows just how much trouble joint ownership can cause if it's not properly documented and implemented.  In the Schwartz case, siblings argued over the sale of a Florida property that had been transferred into joint ownership between an elderly women ("Mom") and an adult daughter ("RS"). RS wanted a dwindling line of credit to be increased to cover Mom's care costs while her siblings felt the Florida property should be sold. The Ontario Judge established that firstly he had authority to issue a judgment on a property in Florida and secondly, that the Pecore and Madsen Estate decisions would be applicable in this case.  The law presumed that RS held title to the condo subject to a "resulting trust" for her