Joint ownership allows two or more people to jointly own assets such as bank accounts, real estate, investments, and other property. The key aspects of joint ownership are: 1) It provides the right of survivorship so that when one joint owner dies, the remaining owner(s) automatically inherit full ownership of the asset. 2) In Ontario, assets jointly owned by a parent and child are presumed to be held in trust by the child for the parent's estate, unless the parent clearly intended it as a gift.

1. How do joint assets
work?
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2. 2
Basics of Joint Ownership
Joint ownership allows two or more people to own assets together. This
type of ownership can apply to bank accounts, real estate, investment
accounts, stocks and bonds, and various other types of assets.
•The "registered owner" has legal title but no right to keep the asset, which is
held for the "beneficial owner".
•The "beneficial owner" is the actual owner, who is entitled to keep the asset
for himself or herself.

3. 3
Right of Survivorship
When one joint owner dies, the survivor receives title to the entire asset.
This is called "a right of survivorship".

4. 4
Presumption of Resulting Trust
•In Ontario, most assets that are held jointly by a parent and a child will not
automatically become the child's asset when the parent dies. Instead, in the
absence of evidence to the contrary, it will be presumed that the property is
held by the surviving child (who becomes the registered owner, but not the
beneficial owner of the asset) in trust for the parent's estate.
•If the parent's intention is for the jointly-held asset to pass to the child as a
gift, this intention should be property documented (not in the will).

5. 5
Tenancy in Common vs. Joint Ownership
Joint ownership is different from tenancy in common, another form of
ownership of real estate that allows multiple co-owners to each have an
interest in an asset. The main difference between joint ownership and
tenancy in common is that a surviving tenant in common does not have a
right of survivorship.

6. 6
Severing a Joint Tenancy
•In some circumstances, it may be beneficial to sever a joint tenancy with
respect to a jointly-owned property – that is, to convert title from joint
ownership to tenancy in common.
•Separation from a spouse can automatically trigger the severance of a joint
tenancy, leaving each spouse with a 50% interest in a matrimonial property.
•A joint owner can also transfer a joint interest in a property to him or herself
as a tenant in common, which also has the result of severing the joint
tenancy.

7. 7
Use of Joint Ownership in Estate Planning
Joint ownership is frequently used for convenience in estate planning and
administration or to reduce probate fees.
•Assets held jointly and transferred by right of survivorship pass outside of a
person's estate.
•If a probate application is being made in respect of an estate, assets that
fall into the estate are subject to probate fees. Assets that were instead held
jointly and pass to a beneficiary by right of survivorship are not subject to
probate fees.

8. 8
Use of Joint Ownership in Incapacity
Planning
A parent may wish to add a family member or friend (typically an adult child)
to title for an asset so that the joint owner is able to assist him or her in
managing the asset.
•The name of a joint owner is frequently added to a bank account so that he
or she can assist in managing the funds and paying bills. For example, in
situations involving an aging parent who has difficulty physically attending at
a bank.
•Such an arrangement can be used in conjunction with Powers of Attorney to
facilitate a joint owner’s ability to help a parent who may later suffer from
cognitive decline.

9. 9
Use of Joint Ownership to Gift Property
Joint ownership can also be used as a method of making a gift.
•Joint ownership allows the donor of the gift to retain a benefit in the asset
being given, as a joint owner of the property.
•A gift in the form of a joint tenancy is generally not revocable. However, a
joint owner may be able to take steps to sever a joint tenancy, such that the
donor's estate will have a 50% interest in a property instead of the surviving
joint owner becoming the sole owner of the asset.

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Thank you for reading!