Joint owners can refuse to cooperate when one needs to deal with the property (i.e. one must have the consent of the joint owner to sell or otherwise deal with the jointly owned asset).
The adult child may die before the parent, or the transferror and transferee may die in a common accident.
An estranged spouse of the adult child could make a claim against the jointly held property.
Creditors of a bankrupt joint owner could make claims against the jointly held property.
Tax problems can arise as a result of a “disposition” occurring for income tax purposes and capital gains taxes becoming payable. Principal residence exemptions can be lost or reduced when real estate is registered in joint names with an individual who already owns a principal residence or subsequently acquires one.
While this list is not exhaustive, it highlights some of the important risks.
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(Important note: These comments and all comments on this website are provided for general information purposes only and should not be construed as legal advice. The reader should seek and specifically retain an estates lawyer before acting on this information.)