Author: Reema Bounajem, JD
Major life events, such as marriage, the birth of a child, or divorce, can be good opportunities to review how your real estate is titled. A real estate deed identifies who owns the real estate, and when there are multiple owners, what type of joint ownership they hold.
Each type of joint ownership has different survivorship rules. As a result, it is important to understand how your real estate ownership fits into your overall estate plan. If you decide to transfer real estate to a trust, the deed will need to be updated accordingly. Common types of jointly owned real estate include the following:
Tenancy in Common: Two or more people each own an interest in the same property, and the shares may be equal or unequal (e.g., 60%/40%). There is no automatic right of survivorship. When an owner dies, their interest will pass accordingly to their will or trust.
Joint Tenancy with Right of Survivorship: Two or more people own equal interests in the same property. There is a right of survivorship, meaning that when one owner dies, their interest passes to the surviving owner or owners.
Tenancy by the Entirety: Only available to married couples, this form of ownership includes a right of survivorship to the surviving spouse.
The rules governing these types of ownership vary by state. An estate planning attorney can advise you on how your real estate is currently titled and help you determine how it can best be incorporated into your overall estate plan.
