Estate Planning Complications When Property Is Co-Owned
One of the things that need to be settled on when taking care of estate planning is deciding who will acquire the property that you own. Something that can complicate this process is co-ownership of real estate. We’re going to discuss a hypothetical example to show how co-owned property can lead to discrepancies that end up having to be worked out later by the court system.
How Does Shared Property Ownership Affect Inheritance?
Imagine a father buys a house and decides to have his two adult sons on the deed. Ownership is split: 1/3 to the dad, 1/3 to the older son, and 1/3 to the younger son. Some time passes, and then dad has a falling out with his younger son. Now he wants to leave everything to his older child. But what about the third of the house that is deeded to the younger son? Will the courts allow the dad to leave the younger son’s interest in the home to his older child?
This is an oversimplified example to show the complications that can result in estate planning when it comes to sharing ownership of property. This can occur whether the other owners are family, friends, business partners, or anyone else. This makes it vital to have your planning properly in place and to consult an estate planning attorney when making decisions that will affect your future estate.
The Estate Planning Attorneys San Diego Residents Can Trust
If you need help with your estate planning, the attorneys at Petrov Law Firm can provide valuable advice on how to ensure your wishes are met. To learn more, contact our San Diego, California practice at 619-344-0360.