The Fight Of Survivorship

Before placing title to your home, bank account or investments into joint ownership with another person, it's important to understand the financial and legal risks involved. These transactions are regularly the subject matter of costly litigation, particularly when the recipient does not contribute financially in exchange for receiving the interest – a 'gratuitous transfer'. When these disputes reach court, a key question for the judge is the transferor's reason for making the gratuitous transfer.

Why might you want to gratuitously transfer ownership of an asset into joint tenancy?

1. As a Gift

On your death, ownership can go directly (by right-of-survivorship) to the surviving joint-tenant – for example your spouse or child – without passing through your estate. This means probate fees are avoided, as well as the inconvenience and delay of estate administration.