The way property is owned plays a key role in how it transfers after someone dies. Joint tenancy is a common form of shared ownership in California. If you’re planning an estate or managing one, understanding joint tenancy helps clarify how certain assets are distributed.
What joint tenancy means for property rights
Joint tenancy allows two or more people to hold equal ownership in a piece of property. It includes the right of survivorship, which means that when one joint tenant dies, their share immediately transfers to the surviving co-owner(s). This happens automatically and does not require probate, which can streamline the estate settlement process.
Why it avoids probate—and why that matters
Property held in joint tenancy bypasses probate because ownership transfers by law, not by will. The surviving joint tenant only needs to file a death certificate to update the title. This simplifies the process and avoids the time and costs often associated with court proceedings. However, since this transfer happens outside of probate, any instructions in a will won’t apply to that property. That can lead to confusion or unintended outcomes.
The risks and limitations of joint tenancy
While joint tenancy offers convenience, it has drawbacks. Adding someone as a joint tenant immediately gives them equal ownership rights. That limits your ability to sell, refinance, or make decisions about the property without their consent. Furthermore, if your co-owner faces lawsuits or owes creditors, their share of the property can be exposed to legal claims. These risks are often overlooked during estate planning.
Joint tenancy can be beneficial under the right circumstances, especially for spouses or trusted family members. Still, you should weigh the consequences carefully. What appears efficient today could reduce flexibility or create problems later.