Sharing is good for the soul, but as many aging boomers are discovering, it's also a powerful estate-planning tool. Unfortunately, it's also a tool that's often misused. Investing Joint ownership is attractive to many couples because it's an easy way to bypass probate, the sometimes time-consuming and costly process by which a court distributes your assets to your heirs. Jointly held property automatically goes to the surviving owner when one owner dies.
Homes are the most common type of jointly owned property.
Typically, when couples buy a home, the title company lists them as joint tenants. Joint tenancy ensures that if a spouse or partner dies, the survivor will have a place to live. Likewise, a jointly owned bank account ensures the survivor will have access to checking and savings accounts. But older couples are also considering joint ownership for other big-ticket items, such as second homes, cars, and investment portfolios. Some are also setting up joint ownership agreements with children.