Loading...
Bless the heart of the stormwater advisory group that suggested to raise the stormwater fees to record levels. I wonder...

Joint-ownership property titling can avoid costly probate process

Ngo, Thanh 2018.jpg
1 of 2

Thanh Ngo

property-khxE--621x414@LiveMint.jpg
Loading…

By Thanh Ngo

Sunday, December 2, 2018

Titling assets properly is the very first step to protect your assets and ensure that they can be passed onto your loved ones efficiently, especially when you share ownership of the assets with another person. Different property titling methods can entail different probate consequences. In this article, I describe the five common methods of joint-ownership property titling.

1. In joint tenancy, two or more persons own equal shares of a property. The owners do not have to be related or married to each other. When the asset is owned jointly by spouses, the asset is passed onto the surviving spouse upon the death of the other spouse.

However, contrary to one would expect, when the asset is owned jointly by unmarried individuals, the entire value of the asset is included in the deceased’s estate and is subject to probate. Therefore, joint tenancy might not be the best property titling method if you want to share joint ownership with somebody other than your spouse.

Furthermore, if one of the owners fails to honor his/her financial obligations, the asset can be subject to the pursuit of the creditor(s) up to that owner’s respective ownership percentage.

2. Tenancy in common is similar to joint tenancy in many ways. The key difference between joint tenancy and tenancy in common is that the relative ownership percentages of the tenants in common may differ.

One owner can own 25 percent of the asset while the other can own the remaining 75 percent. If one tenant in common deceases, the percentage of his/her ownership in the asset is included in the estate and is subject to probate.

3. Joint tenancy with rights of survivorship (JTWROS): The right of survivorship differentiates JTWROS from joint tenancy and tenancy in common. Upon the death of one owner, his/her share of the ownership is transferred to the surviving joint owner automatically by operation of law without going through probate.

Each joint owner has the right to transfer or sell his/her interest in the property without the consent of the other joint owner(s) and thus might destroy the JTWROS status and consequently might convert a JTWROS into a tenancy in common.

4. Tenancy by entirety is a JTWROS only between spouses. However, different from JTWROS, neither spouse may transfer or sell their interest without the consent of the other spouse. Tenancy by entirety provides better protection from the creditor(s) against one spouse than a JTWROS because the property is not owned by either the husband or the wife but by the marital entity.

5. Community property is recognized in the states of Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Married couples own an equal and undivided interest in all properties accumulated during the marriage.

Each spouse owns half of the value of the community property. Either spouse has the right to transfer or sell one half of the property. Upon the death of one spouse, one-half of the value of the community property is included in the probate estate and gross estate of the deceased spouse.

Being aware of different methods of joint-ownership property titling and choosing the right method from the onset can help avoid subsequent costly probate process.

Thanh Ngo, is staff member of the Department of Finance – College of Business East Carolina University.

Loading…

Humans of Greenville

@HumansofGville

Local photographer Joe Pellegrino explores Greenville to create a photographic census of its people.

Business

December 02, 2018

Titling assets properly is the very first step to protect your assets and ensure that they can be passed onto your loved ones efficiently, especially when you share ownership of the assets with another person. Different property titling methods can entail different probate consequences. In this…

Ngo, Thanh 2018.jpg

November 18, 2018

The anticipation of getting a new car is exciting but haggling for a good deal and deciding the best way to finance this major purchase can be extremely stressful.

One of the major auto financing decisions is whether to buy or lease. The best financing choice for you will depend on your personal…

Anne Fisher (1 of 1)_pp.jpg

November 11, 2018

Like any marriage or partnership, the landlord-tenant relationship generally begins with optimism from both sides. Unfortunately, disputes often arise when the parties disagree on what exactly the lease requires of the parties.

A recent decision from the Court of Appeals of North Carolina, Brennan…

Serenity Rasmussen.JPG

October 14, 2018

All of us encounter risk in our lives. However, many individuals do not appropriately manage the risk they encounter.

Many individuals, for example, quit smoking only after learning they have signs of cardiovascular disease, purchase the minimum amounts of automobile liability insurance despite…

James Karl 1.jpg

October 07, 2018

I find that people who are 65 or older are generally knowledgeable about Medicare. However, since health care and health insurance represent a significant percentage of our individual budgets, people younger than 65 need to understand how Medicare works in order to help prepare for retirement.

You…

SilverDAVE (2).jpg

September 30, 2018

To say that “term life is always the best kind of life insurance to buy” would be dispensing what I call “one-size-fits-all financial planning advice.”

I am fiercely opposed to doing that, as I’ve seen it cause too much damage to unsuspecting individuals who thought…

brenda wells (2).jpg

September 23, 2018

The Veterans Administration published changes earlier this month to a benefits program commonly referred to as Aid & Attendance. If you are a war-time veteran or a widow(er) of a war-time veteran, you have less than 30 days to take action to potentially preserve some of your hard-earned…

SilverDAVE (2).jpg

September 16, 2018

I have heard financial “experts” in the media say things like:

“Buy life insurance equal to three times your annual salary.”

“Never buy whole life insurance. Always buy term life insurance.”

“All life insurance is a rip-off.”

These are what I call…

brenda wells (2).jpg
8 stories in Business. Viewing 1 through 8.
«First Page   «Previous Page        
Page 1 of 1
        Next Page»   Last Page»