Joint Tenancy (JTROS) Traps in Pennsylvania

JTROS is one of the most commonly used (and most commonly misunderstood) forms of property ownership in Pennsylvania. When it works as intended, it passes property outside of probate. When it does not, the consequences can be severe.

How JTROS Works

When one joint tenant dies, the surviving joint tenant(s) automatically receive the deceased owner's share by operation of law. The property does not pass through the will and does not go through probate. This happens regardless of what the will says. A will that says "I leave my house to my daughter" is meaningless if the deed says "John Smith and Mary Smith, as joint tenants with right of survivorship."

The "Convenience Account" Problem

A parent adds an adult child to a bank account "just so they can help pay bills" or "in case something happens to me." The bank sets up the account as JTWROS. The parent dies. Under Pennsylvania's Multiple-Party Accounts Act, the balance presumptively belongs to the surviving child by right of survivorship, even if the parent's will says "divide everything equally among my three children." That presumption can be overcome only by clear and convincing evidence of a different intent at the time the account was created (20 Pa.C.S. § 6304(a)). Absent that proof, the other two children get nothing from that account.

This scenario generates more family disputes than almost any other estate issue I see. The child on the account claims the money was meant for them; the other children claim it was a convenience arrangement, not a gift. The resulting litigation (an Orphans' Court proceeding to determine the decedent 's intent) is expensive and uncertain.

Common JTROS Traps

Unintended disinheritance: Parent adds one child to a deed as JTWROS to "avoid probate." Parent dies. That child now owns the entire property, and the other children are disinherited regardless of the will. This is especially problematic in blended families where the surviving joint tenant is a second spouse.

Creditor exposure: The moment you add someone as a joint tenant, their creditors can potentially reach the property. If your adult child has a judgment, tax lien , or bankruptcy, your home may be at risk.

Gift tax issues: Adding a non-spouse to a deed as a joint tenant is a taxable gift for federal purposes. If the property is worth more than the annual exclusion ($19,000 in 2026), a gift tax return may be required.

Basis surprises: When property passes through a will at death, the beneficiary receives a full step-up in basis to fair market value (eliminating capital gains on appreciation during the decedent's lifetime). Joint tenancy changes that math, and it changes it in different directions depending on who the joint tenant is. Between spouses, only one-half of the property is included in the deceased spouse's federal gross estate (26 U.S.C. § 2040(b)), so only that half is stepped up and the survivor's original basis carries forward on the rest. A later sale can then produce a large capital gains bill. With a non-spouse, such as a child added to a deed, the result is usually the opposite. Because the child furnished none of the consideration, the entire property is included in the parent's federal gross estate for estate tax purposes under 26 U.S.C. § 2040(a), and the child takes a step-up to date-of-death value under 26 U.S.C. § 1014(b)(9). Inclusion in the gross estate is a tax rule only; the property still passes to the child outside probate. If the property was a rental, the stepped-up basis is reduced by the depreciation the child was already allowed to deduct before the parent's death. The real basis trap in that situation appears if the property is sold while the parent is living: the share given to the child carries the parent's original cost basis, not a stepped-up one. Either way, do not add someone to a deed before running the basis question.

Inability to sell or refinance: Once someone is a joint tenant, you need their consent to sell, mortgage, or refinance. If the relationship sours or they become incapacitated, you may be stuck.

When JTROS Makes Sense

Between spouses (though TBE is usually better in PA), or in limited situations where the survivorship feature genuinely matches your intent and you have accounted for the tax and creditor implications. In most cases, a properly drafted will or trust accomplishes the same probate-avoidance goal with far fewer risks.

Legal and factual content on this page was last verified: Aug. 2026. If you are reading this significantly after that date, confirm key provisions with current statute text or contact our office.