Barry, age 67, is a widower and has two adult children, aged 36 and 33, who are both married. Twenty years ago, Barry purchased an investment property for $100,000 and today it is worth $200,000. He is considering transferring the property into joint tenancy with his two adult children. Which of the following are the biggest risk to consider before electing a transfer to joint tenancy?
1. With the property in joint tenancy when Barry dies, it will not go through his estate and he will not have to pay probate
2. Barry will not be able to split the income related to the investment property as attribution rules will apply to him
3. He will lose control of the property and his children could make changes or even sell their shares to someone else
4. Both Barry’s children are married and if either of their marriages breakdown the investment property may be included in family assets.