Why Do Californians Hold so Many Assets in Joint Tenancy?

When the administrator or executor of an estate starts making a complete list of assets, he or she often discovers that the decedent held a lot of property in joint tenancy.

There are several reasons for this. Many stockbrokers, real estate agents, and bank officers advise their clients, especially married couples or domestic partners, to place the assets in joint tenancy. Elderly persons or people who are ill or incapacitated often hold their bank account in joint tenancy with a trusted relative or friend who will take care of payments and savings.

There is a more compelling reason, though: joint tenancy ownership avoids probate.

Under California probate law, when one of the co-owners of property in joint tenancy dies, his or her share goes automatically to the surviving tenant. If there were more than one co-owner, the decedent's part is transferred to the surviving joint tenants who will continue to hold the property in joint tenancy.

This automatic transfer of ownership means that a formal probate process is not necessary. The personal representative will need to accomplish certain formalities in order to change the owners' name on the deed, certificate, or other record.

When the last tenant dies, the property will be included in that person's estate and may be subject to probate.

How do you know what is joint tenancy property?

The personal representative, when preparing the Schedule of Assets, needs to indicate for each listed item the type of ownership. Looking at the deeds and other ownership documents, the representative will discover whether the assets are owned in joint tenancy, sole ownership, tenancy in common, or as community property. It may be prudent to check the ownership of real property with a title company, because the decedent could have made changes prior to death without telling anyone.

Talk to San Diego estate planning and probate attorney Scott Grossman about your situation and the questions you have. Call our lawyers at (951) 683-3704 or (866) 840-0000 for your FREE 30-minute telephone consultation. Also, order our FREE book The Insider's Guide to California Probate and Trust Administration.