Pros and cons of a joint inheritance 

On Behalf of | Jan 24, 2025 | Estate Planning |

When it comes to dividing up an inheritance, assets do not necessarily have to be divided between beneficiaries. This is often the case, as financial accounts may be split evenly or specific tangible assets may be given directly to one beneficiary, while another beneficiary gets a different asset. But it’s also possible to leave property jointly.

For example, say that a family has a property on a lake that they use for vacations, where they go camping and fishing. The parents may own this property, but they don’t necessarily have to leave it just to one child. They could leave it jointly to all of their adult children, and ownership will typically be divided equally between them. Four adult children would all own 25% of the vacation property, for instance.

The upside

The benefit of doing this is that it can help to keep assets in the family. It also ensures that everyone has access to a property that they loved when they were growing up. Furthermore, it can lower the odds of disputes because ownership is split up equally. If the property was simply left to the firstborn, for instance, younger siblings may feel slighted or left out.

The downside

On the other side of the coin, though, a joint inheritance can cause some problems because all of the beneficiaries have to work together. If they keep the property, they have to figure out how to handle things like paying utilities, paying property taxes and similar responsibilities. If they decide to sell the property, they all have to agree to go through with the sale. This could lead to disputes if two siblings want to sell and the other two want to keep the property in the family.

In other words, estate planning with real estate can get very complex. It’s important for those involved to understand the legal options they have to seek a positive resolution.