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Problems with Joint Tenancy in Michigan | Parents, Don’t Add Your Children To Title of Your House
February 18, 2009
Filed under: Estate Administration,Estate Planning — Christopher J. Berry | Estate & Elder Law Attorney @ 6:37 pm
As a Michigan estate planning lawyer it seems like a couple times a month I run into the issue where a parent has named a child on their deed to their property so that the parent creates a joint tenancy with rights of survivorship. More often than not this leads to problems down the line. People think this is effective Michigan estate planning, but it often just leads to a messy administration.
Let’s look at a hypothetical, a husband named his second spouse and daughter (the wife’s step daughter) as joint tenants with rights of survivorship. Well now the husband has passed away, leaving the surviving wife and her step daughter who she doesn’t speak to as joint owners. If the surviving wife wished to sell the property, she would have to get the step daughter’s permission since she is a joint owner. Maybe that was the husband’s wishes, maybe not. We don’t really know.
So, some problems of joint tenancy with rights of survivorship in Michigan are:
- Once you place property into joint tenancy, you cannot change your mind. You can only make changes if you can negotiate or persuade the other joint tenants to follow your wishes.
- You no longer control the whole property. The other joint owners now have as much legal right to the property as you do.
- Anyone you are on a deed with jointly opens you up to the claims of their creditors.
Joint tenancy is fraught with issues, and as a Michigan estate planning lawyer, I see too many people using it as their “estate plan” when they do not understand the ramifications.
-Christopher J. Berry, Esq.
Michigan Estate Planning Lawyer
Can you suggest a good alternative to joint tenancy? I want to leave my house to my brother and my sister. Would it be better to have them tenants in common?
Thanks.
That might not meet your needs either. An enhanced life estate deed or possibly a trust might make more sense since you most likely want full control of the residence while alive and do not want to have to worry about your brother or sister getting sued.
My husband is one of 4 siblings who were deeded lake property in joint tenancy. My husband, for 30 years has been the only one living in Michigan; therefor taking care of the property. Now 2 of the siblings want to sell their share – we want to keep the property.
One sibling even suggested that our son buy her share, because he has done so much work on the property.
What can we do to keep the property?
I’d have to see a copy of the deed, it could be tenancy in common or joint tenancy with right of survivorship. You’re going to have issues if you cannot all agree on a course of action. Buying out the other siblings may be an option. This is one of the issues with joint tenancy, especially with cottages up north. We recommend that these be put in a Family LLC.
Thank you for replying, the deed does say joint tenancy with right to survivorship.
Two want to sell, and the two who want to keep the property are my husband and his sister who now lives in the same town.
My husbands mother had a laywer write up the deed and the property was given to the 4 siblings for $1.00
We did have it appraised, $54,000. We certainly do not feel they are entitled to that much money; espepcially since they have not contributed to the upkeep of the cabin. I’ll have to research Family LLC.
Does this help?
Thanks
Without all the owners being on the same page, short of litigation, you do not have many options. This is one of the concerns with naming anyone other than your spouse joint owners on any assets or properties. In Michigan, we have better alternatives including Real Estate Trusts or Legacy Deeds. But, once the asset is in the hands of joint owners, everyone’s hands are a bit tied.
42 acres owned by grandparents willed down to 4 children, one of which was my father wha has passed away. Some of my aunts passed away leaving it in the hands of the next generation. There is a bit of oil well royalty income that each gets 1/4 share of and there is general agreement to keep the land in the family as a private extended family campground. I have 9 siblings and we setup our share as a corporation with each descendant on our branch a member under a common set of by-laws. One of my cousins built a cabin near an area where we had paintball blinds and a field that has been in place for over 4 years. He built his cabin last year and he has progressively and unilaterally destroyed most of the blinds. These cost several hundreds to build yet he has taken bullying tactics to do what he wants on the land. We have joint tenancy yet any personal property destruction should still be a criminal act. Is it?
Also we also built a cabin 5 years ago and I assume the section of area we stacked out is for our own personal use. Is that correct.
Paul, that is a very distinct fact pattern, give us a call if you would like us to walk you through the issues invovled. 248-971-1700.
Quitclaim deed: Dad and Uncle with right of survivorship. Dad wants out-wants his share to go to his six kids. Uncle wants his share to stay in his name and his daughter’s name with right of survivorship. Could deed’s language be: “Uncle + his daughter w/ r of s;also with right of survivorship to Dad + Kid1, 2, 3, 4, 5, 6 ? This seems awfully confusing. Real estate trust or legacy deeds are better??? I wouldn’t want to be responsible for anyone else’s debts. My uncle is 94 and Dad is 90. Hurry!
Or would it be simpler just to word dead Uncle + Dad as tenants in common and let land pass through testate succession?