PROBLEMS
WITH JOINT OWNERSHIP OF HOME WITH YOUR CHILDREN
By: Mina N. Sirkin, Esq. and Evan R. Sirkin, Esq.
Many clients come into our office wanting to put their children on the title of their home so their estate avoids probate. This article will address the problems of joint tenancy with your children.
As the economy takes a down turn, we face an even more litigious society than then last two decades. It is now more important to protect oneself against possible lawsuits.
The typical life problems of you children can become yours if you are joint tenants with your children. For example, if your child is in the process of divorce, that child's spouse may claim that half of your home is an asset that is within the court's jurisdiction for marital settlement procedures. Although your child's spouse may generally lose such and argument, this will tie up your home until your child's divorce is final.
If your child is involved in an auto accident without insurance or with inadequate insurance, a judgment against your child's name can result in your involvement. This in turn could result in a judgment lien imposed on your child's half of "your" home.
Creditors of your child will also be able to enforce a judgment lien against your house in order to satisfy your child's debts. This could force a sale of your home against your wishes. Your child's largest creditor(s) may be the IRS or the Franchise Tax Board. If your child has not paid income taxes or has incurred other tax liability, those tax entities may attach a tax lien against any real property in your child's name.
If your child files Bankruptcy to avoid his or her creditors, he or she will have to declare part of your home as his or her assets, and creditors will ask the court permission to sell his or her share of the home to satisfy any debts. This will force a sale of your home and will tie up your home in the courts against your wishes.
Furthermore, once you have put your son or your daughter on title, if you want to sell your home, you MUST obtain your son or daughter's permission to sell the home. If he or she refuses, you will NOT be able to sell the home without resorting to litigation.
How can you solve these problems? By putting your property in trust, your child will avoid probate, and you will not be affected by your child's financial problems, your child's law suits or divorce proceedings.
If you need personal assistance regarding creation of trusts for children or grandchildren, private appointments are available at our law office. Please feel free to call our office at 818. 340. 4479 for an appointment.
Mina N. Sirkin and Evan R. Sirkin are partners at the Law Offices of Sirkin and Sirkin. Sirkin and Sirkin has seven office locations available throughout Los Angeles and Orange counties. Their practice is limited to estate planning (Wills, Trusts and Probate). To reach them by telephone, please call 818. 340. 4479.
The information
you obtain at this site is not, nor is it intended to be, legal advice.
You should consult an attorney for individual advice regarding your own situation.
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