There are a few different kinds of property ownership that you might be considering if you own real estate. These transactions aren’t only for buying or selling a property; they can help you protect your real estate if you are getting older and want to provide it to beneficiaries later.
Individual ownership is when you put a property into your name and have no others on the deed or title. This also means that you have no designated beneficiary for the property, which is something to consider. Without naming a beneficiary, the property will have to go through probate court after your death in most cases.
A better option for property that requires a beneficiary is to have a joint ownership. There are a few kinds including community property, tenancy by the entirety and joint tenancy with right of survivorship. With community property, the state tends to recognize a husband and wife’s relationship. That means that the property they own together is marital property and belongs to both.
Tenancy by the entirety is a kind of joint ownership that only exists between husbands and wives. Both spouses have the right property in this kind of an agreement, but they must agree to sell a property. In the event of one spouse’s death, the surviving spouse obtains the property.
Joint tenancy with right of survivorship can work for families or individuals who want to appoint beneficiaries. All of the owners of the property own equal rights to the property, and if one person dies, the ownership of the property passes on to the other beneficiaries.
These are just a few ways to transfer property to your beneficiaries. There may be other options to consider as well, which your attorney can discuss with you.
Source: The Balance, “Overview of Types of Property Ownership,” accessed Nov. 16, 2016