There are two types of joint ownership, Joint Tenancy with Right of Survivorship (JTWROS) and Tenants in Common (TIC). Problems with JTWROS include postponement of probate until last tenancy, loss of the double step-up in tax basis, and outright distribution. Many couples take title to property by this method and don’t realize the potential consequences down the road. It’s important to remember that JTWROS does not avoid probate, it merely postpones it until the second spouse passes away.

Similarly, holding title as tenants in common, you also lose the double step-up in tax basis, and your property is subject to the estate plan of each tenant as well as probate for each tenant in the event that both parties do not have a comprehensive estate plan.