Joint Tenancy With Right Of Survivorship.
Question
I need a joint tenancy with right of survivorship form that I can file myself. Is it true that the two persons must take title at the time the property is purchased? I bought the property myself, so can I still change to joint tenancy?
Answer
There are no specific restrictions on transfer of title regarding when it can be done as long as the parties are legally competent to do so at the time the document is executed by the parties. However, the act can in itself have ramifications including some that might relate to timing. Possible legal and financial implications can relate to loan, income tax, and estate planning issues. As examples, transfers of an ownership interest may trigger the acceleration clause found in most loan documents, may impact future tax liabilities, and may have unintended consequences upon death of a party.
It is important that you use the correct type of deed form for what you wish to accomplish and that the form meets the requirements of both the state and, possibly, of the particular recording office in the jurisdiction where the property is located. One can obtain deed forms from various sources. Sometimes a free form can be obtained from a local title insurance company or escrow company, with forms from these sources probably more certain to be correct under current law than something purchased from a local office supply store. Under some circumstances it is best that the deed be drawn up by a qualified attorney.
As already mentioned above, just as important as the form, often more so, is whether joint tenancy is the proper form of ownership for a person’s situation. Joint tenancy is usually chosen for reasons related to estate planning but it is not always a substitute for other more sophisticated methods. Unless you have already done so, you should carefully study the subject yourself or consult an attorney.