When newlyweds embark on building their lives together, financial and asset planning often involves joint ownership. While this may seem like a convenient approach, it can lead to unintended complications, especially in the context of estate planning. Here’s why joint ownership should not always be the default choice:

1. Loss of Control

Joint ownership ties both spouses to decisions regarding the asset. If one spouse passes away, the surviving spouse inherits full ownership, potentially overriding any other wishes outlined in an estate plan.

2. Increased Liability Risks

Jointly owned assets can be subject to creditors or legal judgments if one spouse faces financial trouble, even if the other spouse has no involvement in the issue.

3. Tax Implications

Depending on the type of asset and its value, joint ownership can lead to unfavorable tax outcomes, particularly for estates above certain thresholds.

4. Limited Estate Planning Flexibility

Assets owned jointly bypass your will or trust, meaning they are distributed directly to the surviving owner. This could prevent assets from being allocated according to a broader estate strategy or to other heirs.

A Better Approach

Newlyweds should consider alternatives, such as creating individual wills and trusts to address their unique goals while maintaining flexibility and control over their assets. Consulting with an estate planning attorney can help ensure their plan aligns with their needs and protects their future.

Conclusion
Joint ownership may be convenient, but it’s not always the best strategy for estate planning. Taking the time to explore tailored solutions ensures financial security and harmony for years to come.

Contact the Davis Schilken, PC team to learn how to safeguard your future today (303)670-9855!