Owning assets with your adult child as “joint tenants with right of survivorship” may seem like a simple way to streamline your estate plan. However, doing so can carry important legal, tax and practical implications that deserve careful consideration. For example, when you add a child as a joint owner, he or she typically gains immediate ownership rights to the asset (not just a future interest). This means it may be subject to the child's creditors, a divorce settlement or lawsuits. These external risks will be beyond your control and can jeopardize assets you'd planned to use to support yourself during retirement. Contact us for additional information.
