A Simple Solution?

Campbell, Thomas H.
April 1994
Journal of Financial Planning;Apr94, Vol. 7 Issue 2, p58
Academic Journal
The article focuses on the usefulness of a funded revocable trust to avoid probate, ensure privacy and allow for the smooth transition of management of assets in the event of death or disability. However, he says that the clients are more comfortable with equal joint ownership because it confirms their view of marriage as a complete sharing of benefits and burdens as well as a rejection of any notion of mine and yours. The author says that he is uncomfortable with joint revocable trusts. The transfer of the property from joint ownership to ownership by a joint revocable trust changes the property rights of each of the grantors. The author says that there are several potential problems that must be avoided when this change occurs. Firstly a taxable gift may occur when the trust is funded. Funding of the trust with any separate property may cause an unintended gift. The gifts occur because the spouse who was not the previous owner of the separate property has received a beneficial interest in the property placed into the trust for life. The author says that one can avoid the gift-tax problem by making the trust revocable at the option of either grantor. There would be no completed gift as long as the donated property is returned to the donor spouse upon revocation.


Related Articles

  • Examining some problems on trust. Keenan, Denis // Accountancy;Sep78, Vol. 89 Issue 1021, p113 

    Examines the problems of joint ownership and implied trusts in Great Britain. Evaluates the syllabus for PE I Law on knowledge of implied trusts; Discussions on the legal consequences involving joint ownership; Implications of contractual license approach.

  • Spousal jointly owned property: A new step-up in basis. Smith, Michael F.; Gerson, David H. // CPA Journal;Aug93, Vol. 63 Issue 8, p62 

    Provides insights on spousal jointly-owned property. Exception to the rule that a surviving spouse receives a step-up in basis for one-half of the value of spousal jointly owned property; Community property rules; Illustrative example; Applicable law; `Gallenstein versus United States' case.

  • A Primer on Wills. HILOWITZ, LYNNE S. // Family Advocate;Fall2015, Vol. 38 Issue 2, p41 

    The article discusses definition of terms used in planning and drafting wills as a part of client's complete estate plan. Topics discussed include meaning of joint ownership as an individual owning property jointly with one or more others, trust property defined as a property that a person puts...

  • How To Title Assets, Avoid Traps. DONALD JAY KORN // Investors Business Daily;10/26/2015, pA09 

    The article reports on the problems associated to the use of a joint tenants with right of survivorship (JTWROS) in managing assets. The issues that could emerge from the arrangement are discussed including the access to assets by one party if a co-owner dies, other heirs could be left out, and...

  • Nonspousal joint tenancy can create tax liability. Kistner, William G. // hfm (Healthcare Financial Management);Sep96, Vol. 50 Issue 9, p90 

    Looks at the federal tax liabilities on jointly owned assets. Includes gift taxes; Income taxes; Estate taxes.

  • The advantages of jointly held property. Ellentuck, Albert B. // Nation's Business;Mar94, Vol. 82 Issue 3, p78 

    Presents tax advice to owners of jointly held property. Transfer of assets to heirs; Gift and estate taxes; Convergence between joint ownership and the objectives of wills.

  • Joint ownership of property. Hochberg, R. Mark // FW;1/17/95, Vol. 164 Issue 2, p84 

    Focuses on joint ownership of property. Different types; Income-, gift- and estate-tax ramifications.

  • A herd of owners, but only one cow. Donaldson, Joan // Christian Science Monitor;11/17/99, Vol. 91 Issue 246, p22 

    Relates the experiences of the author who shared the benefits of owning a single cow among many owners.

  • Your money. Loeb, Marshall // Las Vegas Business Press;02/03/97, Vol. 14 Issue 5, p30 

    Discusses laws governing joint ownership of a property or a business. Situations that complicate transfer of joint ownership by childless couples; Understanding the laws of intestacy; Types of people who are vulnerable to heavy estate taxes; Computations by the Internal Revenue Service for tax...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics