Risks of Joint Ownership Among Children

Thinking of leaving property to your kids jointly? Learn why shared ownership often leads to family disputes and how to avoid common pitfalls in estate planning.

Leaving real estate to your children may seem straightforward—but giving them joint ownership of one property can create more problems than peace. Without clear structure, shared ownership often leads to disagreements, delays, and even legal disputes.

Why Joint Ownership Can Go Wrong

Conflicts Over Use or Sale

One child may want to keep the property as a rental, another may want to sell, and a third may live out of state. Without a clear process in place, disputes can escalate.

Unequal Responsibilities and Contributions

Who manages the property? Who pays for repairs or taxes? Disagreements over fairness often arise when responsibilities are not clearly defined.

Creditor and Divorce Exposure

If a child is sued, goes through a divorce, or files for bankruptcy, their share of the property may be at risk—affecting everyone else’s interest too.

Limited Liquidity and Flexibility

Real estate is not easily divided. When multiple heirs own a single property, it’s difficult to separate their interests or access individual value without selling the asset.

Smarter Alternatives to Consider

Rather than leaving a property to children as co-owners, consider options such as:

• Holding the property in a trust to provide rental income and structured control

• Placing the asset into an LLC and distributing membership interests

• Directing the sale of the property and distributing the net proceeds equally

Prevent Conflict Before It Starts

Every family is different, but the risks of joint ownership are common. Thoughtful planning can help preserve family harmony—and protect the value of your most important assets.

Contact The Law Office of Jin-Wook Kim, P.C. to explore the best options for passing on real estate and protecting your legacy.