A lot of people don’t think much about how they’re going to title their home, but it’s not really something that should be brushed off. So, with this in mind, let’s take a look at how you should title the home.
In fact, there are multiple ways that you can hold the title to your home. You may do so solely as yourself, in joint tenancy or as tenants in common. Sole ownership is pretty self-explanatory. The title is in your name only, even if you own the property along with others.
Joint tenancy is a way to hold the title in a way that includes more than one person. For example, if you and I own a home together, and one of us passes away, joint tenancy means that the home automatically passes to the other person without having to go through the probate process.
Tenancy in common means that you and I would hold the property together, but if one of us dies, interest is then distributed according to the will or state law (if there is no will).
When deciding how to title your home, you need to decide who you want to end up with your interest in the property. If you are married, joint tenancy might be the best choice. However, if your spouse has credit issues, you’re probably not going to want anyone with credit issues on the title.
Also, you’re going to want to be very careful when adding someone other than your spouse to the title as a joint tenant. You should speak with a tax adviser before doing anything because any adult children could lose potential tax benefits. For example, if you have a son listed as joint tenant, any creditors he has could come after your property. If there are siblings he doesn’t get along with, he can file an affidavit of survivorship and the property can be put solely in his name, even if that’s not what you wanted.
If you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. Let us help ease your stress and give you a plan.