When drafting an estate plan, some assets may be given to single beneficiaries, while others may be divided during estate administration.
For example, family heirlooms might be distributed to multiple adult children, with each receiving specific items according to the estate plan. If financial assets, such as the contents of a savings account, are being passed on, they may simply be divided among the beneficiaries, who will split the funds as the new owners.
For real estate, however, it is common for parents to leave property to multiple beneficiaries jointly. For instance, the parents may own a vacation home that has been in the family for generations, or they may leave their family home—where the children grew up—to all of their children as joint owners. Unless otherwise specified, these joint owners will inherit an equal share of the property.
Potential complications
In some cases, joint ownership works smoothly. For example, all of the children may want to keep the vacation property, split the costs and share joint ownership without issues.
However, complications can arise, particularly if some beneficiaries want to sell the property. While selling is possible, all beneficiaries must agree to the sale since they are equal property owners. If one person wants to sell but the others do not, that individual cannot list the property or complete the transaction on their own. Doing so would violate the property rights of the other owners.
This situation can lead to disputes and conflict among beneficiaries. Those who find themselves in this position must understand all the legal options available to them.