Joint Tenancy Risks in Pennsylvania

Adding an adult child to a Pennsylvania deed or bank account is a common probate-avoidance shortcut. It also exposes the parent to risks most families never weighed.

Creditor exposure

The child's creditors — including a divorcing spouse — can reach the jointly held property.

Inheritance tax

Adding a child to a deed is a taxable gift of half the value at the date of titling, accelerating PA inheritance tax cost.

Step-up in basis

Joint property loses the full step-up in basis the property would have received if it had passed through the estate.

Family conflict

Joint accounts pass entirely to the joint owner at death — often unintentionally disinheriting siblings.