Joint ownership comes in three varieties:
Joint tenancy with the right of survivorship. As the name suggests, if one co-owner dies, the survivor becomes the sole owner.
Tenancy by the entirety. Offered in some states, this type of ownership is generally available for real estate owned by a married couple. Again, the survivor automatically inherits. If property is titled this way, it’s out of the reach of creditors of either spouse, as long as both spouses are alive.
Tenancy in common. Here, each co-owner holds a share of the property outright. That portion can be transferred to anyone by sale, gift, or bequest.
Joint ownership with right of survivorship is the most common form. Among the advantages are probate avoidance and incapacity planning. If one co-owner becomes incompetent or dies, the other one takes over right away.
On the downside, one co-owner will always inherit from the other. Therefore, joint ownership won’t be a good idea for assets you wish to leave to someone besides your co-owner.
