While real estate is currently the most lucrative investment, the considerable monetary injection required locks many investors out of the available opportunities. As such, some choose to invest in conjunction with others. Though this eases your financial burden, it comes with various legal issues.
Choosing to handle the transaction without a reputable real estate attorney from a law firm in Denver, Colorado might leave you with buyer’s remorse and huge losses. One of the aspects an attorney will help you handle is the form of joint property ownership of your investment. Here are your available options:
Joint Ownership with the Right of Survivorship
In joint ownership with the right to survivorship, you own an equal right to the property and can possess, rent, occupy, or use it. Upon your death, the property passes on to the surviving owners without passing through probate. Hence, you cannot transfer the rights of ownership of this property in a will or trust to beneficiaries.
Tenancy in Common
TIC ownership, as it is commonly called, arises when two or more people own one property but have separate titles to it. Each property owner does as he or she wishes with his or her property’s interest. Upon your death in a tenancy in common, your property share passes to the beneficiaries you name in your trust or will.
Tenancy by the Entirety
A tenancy by the entirety exists between a wife and a husband. It provides additional protection to the property owned in marriage. One spouse has to consult the other on decisions affecting the property. The entire property automatically belongs to the surviving spouse after the death of the other. A tenancy by the entirety is recognized in a few states.
The primary benefit of the forms of joint ownership mentioned above is an effective solution for passing on a property after an owner’s death without probate. Your lawyer will recommend ways of coordinating your chosen property ownership form with your estate plan. This way, your survivors will not suffer lengthy court battles over the inheritance of property after your demise.