When considering holding assets as joint ownership with rights of survivorship for estate planning purposes,it is important to understand

Question

Quizplus · Accepted Answer

Holding assets as joint ownership with rights of survivorship means that the surviving joint owner automatically receives ownership of the asset upon the death of the other joint owner. This may be helpful in estate planning, but it also means giving up decision-making power over the asset. It is important to consider if this loss of control is worth the potential benefits. Options A and B are incorrect because joint ownership with rights of survivorship does not affect capital gains taxes until the asset is sold. Option D is incorrect because naming a child as a joint owner of a principal residence does not trigger capital gains taxes, but could have negative implications for Medicaid and could cause a loss of control over the property.

When Considering Holding Assets as Joint Ownership with Rights of Survivorship