Issue 15.10
Part 2
If you and your child were to die in a common accident, special problems arise. Finding out whether you or your child died first will determine who is entitled to your home. If you live longer than your child, you will be the surviving joint tenant and your “estate” would own the house. In that case your house would be given to your heirs. If the joint tenant child lived longer than you, that child would be the surviving joint tenant, and when he or she died, that child’s estate would own the house. In that case his or her spouse and children would be entitled to your home, not your heirs. If it can’t be determined who died first, the likely result would be that one-half of your home would be included in your estate, and one-half in your child’s estate.
A costly and time-consuming lawsuit may be required to fix any of the problems listed above. Usually the lawsuit attempts to establish that you placed your child on the deed to your home for convenience only, – that is, to avoid probate. Avoiding probate is not worth the cost and family tension that would be created if one of these scenarios took place.
Unless you have truly exceptional circumstances and have discussed your situation with an experienced estate planning attorney, you should leave your home in your name only. With a valid will and a simple probate procedure, or better yet, a properly prepared trust, you can ensure that your house is disposed of as you truly intend at your death. You will also keep control of your home during your lifetime and avoid all of these and other potential problems.
Sean Sullivan is a shareholder in the firm Brindley Sullivan, PC. Call (435) 673-9220 to arrange a time to meet with hi to discuss your estate planning needs.