Does joint tenancy ever involve gift taxes?
Yes. Depending upon the value of the gifts and the recipient, a gift tax return may be due. The return and the tax are due April 15th of the year following the gift. Some portion of the property may also be subject to an estate tax if the donor remains a joint tenant. Does joint tenancy reduce income taxes? In most cases it will not. Income will be taxed to each co-owner and, upon disposition, gain or loss will be shared in proportion to interest owned. If husband and wife file separate returns, the holding of income property in joint tenancy may result in additional tax. Does joint tenancy save probate expense? Property held in joint tenancy does not have to be probated at the death of a joint tenant. However, there may be expense in perfecting the record title to property after the death of each joint owner regardless of other probate expenses. In addition, the estate of the last surviving joint owner will have to be probated as opposed, for instance, to property held in a trust. If
