Discussion:Stock held in Joint Tenancy
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Discussion Forum Index --> Advanced Tax Questions --> Stock held in Joint Tenancy
Discussion Forum Index --> Tax Questions --> Stock held in Joint Tenancy
| 2 July 2009 | |
| If stock is held in joint tenancy by two individuals and one of the individuals is deceased, and the estate of the deceased individual is closed, then is the only way to handle this is by re-opening the estate? I guess this is more of a legal question than a tax question. The stock does not say WROS. | |
| 2 July 2009 | |
| no
that's not even the proper way to handle it if the estate is still open | |
| 2 July 2009 | |
| I guess we should define what 'handle this' means, though. Maybe I'm thinking you are talking about re-registering it in the name of the survivor (only) and you are thinking that 'handle this' means something else. | |
| 2 July 2009 | |
| Let's say when the estate was open, there were two beneficiaries, where the remainder was split equally. If joint tenancy means that they each own an equal share of the stock, then 50% of the stock should go into the decedent's estate, and the other 50% would go to the other listed individual. The only way to sell the stock (i.e. what I meant by "handle this" above) would be to establish an executor to authorize the sale of the stock for the estate's 50% share. If the executor is the other listed person (i.e. the living individual) on the stock certificates, then the stock could be sold by that person of all shares. 50% of the proceeds would go to the estate, which would be distributed equally between the two beneficiaries after any taxes. Is my thinking on this correct? The other alternative is if "joint tenancy" as noted on the stock certificates means JTWROS, then the living individual listed on the stock certificates should get all shares and should be able to sell the certificates without any problem, correct? I guess my question would be if "joint tenancy" noted on the stock certificates means that the shares are split equally between the living individual and the estate or does it mean JTWROS, where the living individual gets all shares? | |
| 2 July 2009 | |
| JTWROS property passes title outside an estate. Usually a death certificate is submitted to have the name changed on the title. Some states may have different procedures, you should seek legal counsel. | |
| 2 July 2009 | |
| you don't understand joint tenancy correctly, Ss-CPA
you are thinking of tenancy in common (TIC) the 'WROS' is implied always in JT, it doesn't need to be stated, otherwise there would be no need for the legal titling option of TIC | |
| 2 July 2009 | |
| Larry is correct, but legal counsel is not needed, the surviving of the joint tenants just produces a death certificate ant the entire asset is his
perhaps, Ss-CPA, the confusion stems from the use of the word 'estate' when really you, Larry, and I mean 'probate estate'. Joint tenancy transfers by law (outside of probate). | |
| 2 July 2009 | |
| My misunderstanding is that I wasn't sure if "joint tenancy" had to specifically state WROS to mean JTWROS. I was afraid that "joint tenancy" without the WROS would mean something like TIC. | |
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