?? Why Property Titling Matters in Estate Planning ??
Dani Hallsell
Your Real Estate Problem Solver. Building communities and enjoying life. Senior Real Estate Specialist (SRES?,)
Buying a home or investment property is exciting, but how you title it is just as important as the purchase itself! Property titling impacts:
? Ownership rights ? How the property transfers after your passing ? Potential tax and legal implications
Without proper planning, your loved ones may face delays, legal complications, and costly probate. Here's what you need to know:
?? Common Ways to Title Property & Their Estate Planning Impact
?? Sole Ownership ?? One individual owns the property. ? Pros: Full control over the property. ? Cons: Must go through probate before heirs receive it.
?? Joint Tenancy with Right of Survivorship (JTWROS) ?? Two or more owners hold equal shares. Ownership automatically transfers to the surviving owner(s) upon death. ? Pros: Avoids probate & allows seamless transfer. ? Cons: Property cannot be passed to heirs outside the joint owners.
?? Tenancy in Common ?? Multiple owners each hold a percentage of the property, which can be passed to their heirs. ? Pros: Owners can designate their heirs. ? Cons: Property must go through probate unless placed in a trust.
?? Tenancy by the Entirety (Married Couples Only) ?? Provides asset protection, preventing creditors from forcing a sale. ? Pros: Protects from individual lawsuits/debts. ? Cons: Only available in certain states & only for spouses.
?? Revocable Living Trust ?? Titles the property in the name of a trust, ensuring a smooth transition without probate. ? Pros: Avoids probate, provides control after death, and allows for tax planning. ? Cons: Requires proper setup & management but offers the most flexibility.
? What to Do Before Closing on a Property
?? Decide on Your Ownership Structure – Work with an estate planning attorney to choose the best option. ?? Inform the Title Company – Ensure correct titling before closing (changing it later can be costly!). ?? Align with Your Estate Plan – If you have a trust, make sure your property is titled properly. ?? Review with an Attorney – Get professional guidance to protect your investment & heirs.
?? Proper titling = peace of mind for you & your loved ones! ??
Source: Rutkowski Law Firm www.rutkowskilawfirm.com
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