The Problems That A Survivorship Deed Can Create

A survivorship deed is a deed that allows two people to own property together.

If two business partners would like to own a property together, then they can use a survivorship deed to do that. By doing so, when one of the business partners passes away, the property will automatically go to the other partner.

Survivorship deeds offer a wide variety of benefits. But, even though this is true, there are a number of problems that a survivorship deed can create.

Going over the problems that a survivorship deed can create, and speaking with an estate planning lawyer at the Millhorn Elder Law Planning Group, will allow you to protect your assets.

What Are The Problems That A Survivorship Deed Can Create? 

Out of all the problems that a survivorship deed can create, the most notable are as follows:

• If you are on a survivorship deed, then you can’t do anything with the property, unless you obtain direct permission from the person you share the property with.
• If you have a survivorship deed then your property will go to the other person in the event that you, or the other owner, pass away; this bypasses probate but, when both owners pass away, the property will go through probate unless another estate planning arrangement has developed.
• If you are on a survivorship deed, then your economic interest in the property you own could be considered an asset, making it subject to bankruptcy laws and other, related, conditions.

You can find an example, for each one of the problems outlined above, right below:

• You are on a survivorship deed and want to take out a mortgage, but the person who co-owns the property does not want to do so, thereby preventing you from doing so .
• You pass away and the property goes to your business partner but, then, they pass away without the necessary estate planning arrangement, forcing the property to go through a long, expensive probate process that prevents it from going to their intended beneficiary in a timely manner.
• You file for bankruptcy and, as a result of you being a co-owner of a particular property, that property becomes subject to bankruptcy proceedings.

None of the problems outlined above are pleasant. And, for this reason, it is worth going over whether or not a survivorship deed is right for you, before developing a deed of this sort.

Is Developing A Survivorship Deed A Good Idea? 

The answer to the question outlined above is as follows: it depends on your needs.

If you want to share property with someone else, and you would like this property to immediately go to them in the event of your passing, then it may be a good idea.

On the other hand, if you do not want to be bound to another person’s decisions, and worry about having the property subject to another person’s financial situation, then developing a survivorship deed may not be a good idea. 

Speak With A Florida Estate Planning Lawyer Today 

If you would like to develop a survivorship deed, then you are going to need legal help. Speak with a Florida estate planning lawyer today and we will help you develop the survivorship deed that you want.

Sources: 

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0689/Sections/0689.15.html

law.cornell.edu/wex/asset