When two or more persons decide to acquire property, a number of questions arise with respect to joint ownership. For example, with joint ownership, who manages and how will differences be resolved? What happens when one owner dies? How may the co-owners address liability issues? What tax issues need they address? And, how does joint ownership affect estate planning?
In fact, one of the difficulties with joint ownership of property involves “where to start” where frequently the issue involves how to take title. In that respect options may include taking title directly, such as a Tenant in Common (including community property) or in Joint Tenancy, where the interests are not seen as an active trade or business. Alternatively, there are instances where ownership may be taken through a Trust. Other options include the use of Partnerships, general and limited, or Limited Liability Companies (or similar entities) or a Corporation.
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