There are many ways to hold property title, and the option you choose will depend on your unique situation. In this blog post, we will discuss several of the most common ways to hold title and explain a little bit about each one. We will also give you some tips on how to decide which option is right for you. So, let's get started!
This is the most simple form of ownership and means that you or the entity are the only owner of the property. There are no joint owners or co-signers. This option may be right for you if you are single and have no plans to sell or transfer ownership of the property in the future.
Tenancy by the Entirety:
This form of ownership is only available to married couples. It gives both spouses an equal interest in the property. Upon the death of either spouse, the living spouse would gain total ownership of the property.
This form of ownership is typically used by businesses. It offers protection from personal liability and can help to shield your personal assets from business debts. This option may be right for you if you own a business and want to protect your personal assets.
A trust is an arrangement in which one person (the trustee) holds property for the benefit of another person (the beneficiary) named in the trust. You may want to discuss the benefits of this ownership with your tax advisor for more information.
This form of ownership is available in some states and is typically used by married couples or domestic partners. You may want to discuss the details of this type of ownership with your tax advisor or your attorney.
Tenancy in Common:
This form of ownership allows two or more people to own a property together. There is no right of survivorship between the owners of the property. Each owner has an undivided interest in the property and can sell or transfer their interest at any time.
This form of ownership allows you to hold a life estate only in the property for the remainder of your life. Upon the death of the individual holding the life estate, the real property would pass to the feasible owners of the property as stated in the deed of record.
Joint Tenancy with Right of Survivorship:
This form of ownership allows two or more people to own a property together with equal interests. Each owner has an undivided interest in the property and the right to live in the property for as long as they wish. Upon the death of one owner, the surviving owner will inherit the deceased owner's interest in the property.
These are several of the most common ways to hold property title. The best way to decide which one is right for you is to talk to an experienced real estate attorney and at times your tax adviser who can help you understand your options and make the best decision for your situation.