Hi
My wife and I are deciding whether to put our property purchase as Joint tenants or Tenants in Common 50/50,
I cannot see any financial implications that are detrimental for tax or ownership or any other purposes from choosing 1 method or the other.
I'm leaning towards to Tenants in Common 50/50% – for the fact that this method enables you to allocate what happens to your 50% in a will, whereas even if you state your distribution request in a will under Joint tenants – the will is voided and the surviving joint tenant gets the property regardless of your will instructions…
Any positive / negative's that I havent thought of here???
Generally treated the same for tax reasons. But succession is the main one to consider.
eg. if TIC you may leave your share to a testamentary discretionary trust so as to take advantage of extra tax benefits for children, general tax streaming benefits and asset protection. you may get the will drafted so that there is the option to take a property directly too.
That is good tax planning, but there are reasons to have JT – e.g. if you have a family member who you expect to challenge the will under Family Provision or otherwise. By the property not forming part of your will there is less chance it will be caught up in this – Note NSW is the exception.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks again Terry,
Cheers
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