Chapter 5: Joint Tenancy
They’re Easy and Cheap—But Watch Out for Pitfalls

Ellen and Charlie are newlyweds. They just bought their first house. At the closing, the real estate agent tells them that they should take title to the property in joint tenancy. “That’s what everyone does”, she says. But is that really what everyone does? And, even if it is, is it a good idea for them?

As usual, it depends on the specific situation of each couple. Read on to find out why.

Joint tenancy is property you own with someone else. Joint tenancy is a legal term that means, essentially, "co-ownership." If you and your spouse (like Darren and Samantha in chapter 3) buy a house or car in both your names, each of you is considered a joint tenant and has co-ownership. When one of you dies, the other joint tenant immediately owns it all, regardless of what either of you says in your will.

Joint tenancy (sometimes called survivorship) can be a useful way to transfer property at death. Family cars and brokerage accounts often pass that way.