WHICH TYPE OF OWNERSHIP IS BEST FOR YOU?
How your deed is titled and the type of ownership you designate can make a huge difference in your personal estate planning! Below are brief explanations of each type of ownership and what it means to you and your heirs. It’s best to consult the legality with a qualified attorney before making these decisions, but I hope this helps you to understand the differences.
Sole ownership – Property that is owned just in your name without any other owner or designated beneficiary. Upon your death, property would typically go through probate to get it out of your name and into the names of your legal heirs.
Joint tenancy with right of survivorship – Two or more owners hold an equal right to the property. In most states, jointly owned real estate cannot be sold or mortgaged without the consent of all of the owners. When one joint owner dies, ownership of the property automatically passes to the surviving joint tenants without the need for probate.
Tenancy by the entirety – This is a type of joint ownership with rights of survivorship that can only exist between two spouses. The property cannot be sold or mortgaged without the consent of both spouses. When one spouse dies, ownership of the property automatically passes to the surviving spouse without the need for probate.
Community property – This is a type of joint ownership that is recognized in some states and can only exist between two spouses. Specific state laws set each spouse’s ownership rights in community property. Community Property States are Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin.
Tenancy in common – Another type of joint ownership in which each individual “tenant in common” owns a specific percentage of the property and can withdraw, mortgage, or sell his or her own separate piece of the property without permission from all owners. When a tenant in common dies, his or her share of the property passes to his or her own beneficiaries and not to the surviving tenants in common.
Living Trust – The revocable living trust is established by a written agreement appointing a trustee to manage and administer the property of the grantor. The trust is like a rulebook for how your assets are to be handled when you die.
Remember to always enlist the help of a licensed Realtor to represent you and your interest in any Real Estate transaction. As always, no obligation or cost to you for questions or consultations! http://www.berkshirehathawayhs.com/christy-young-real-estate-agent