Imagine: You’re about to purchase your first home, you receive a document asking you how you want to “hold title,” and you’re like, “um, I don’t know?”
Don’t worry, you’re not alone in your confusion. It may seem as simple, the house is yours, so it should be in your name or your spouse’s name. But there are long term effects that you need to consider for each possible title. When you acquire an asset, it becomes a piece of your legacy, and what happens to your property upon your passing is very important.
The best option is always to invest in a living trust
It provides protection to your heirs and allows you to avoid the costly expense and lengthy time of working through probate. The cost of setting up a trust is around $2,500 where the end cost of probate can be tens of thousands more. Probate is required any time a deceased individual owns more than $150,000 in assets and does not have a trust.
If you are unable to or decide not to draw up a trust, here are other title options to consider:
Single or Married but sole and separate property – Held in an individual’s name, they have full rights to the asset.
Undivided interest in real property between 2 or more persons. Should one party pass away, their interest is automatically inherited by the surviving party. If both parties pass away, the property is subject to probate since it is not held in a Trust
Tenants in Common
Each party owns an undivided portion of the property. Each has the right to sell, lease or will away their ownership percentage at any time. The percentage you own is considered a part of your estate and subject to probate.
Can only be held between a husband and wife as 50/50 ownership. Either party has the unilateral right to will their interest to someone else. If one spouse passes away the property is subject to probate regulations although there is a speedier track for this situation.
Community Property with right of survivorship
This form of title gives a married couple hybrid benefits of joint tenants in that if one spouse passes away that their interest automatically goes to the surviving spouse.
Before investing in real estate, we recommend seeking the advice of legal or financial advisor to ensure that you are protected. There are a number of resources available to you and with our certification in probate, we have the ability to work with you every step of the process before having to get caught up in the web of probate.
That is why its important to work with one of the top real estate companies san diego has the offer. Avenue 3 Realty.
And if you find yourself in a sticky situation, we’re probate certified, so you can always contact us.