Joint Tenancy vs. Tenancy is Common During Tampa Estate Planning
The family home and other real estate are often central in Tampa estate plans. After all, the family home is the most valuable asset for most people in the United States. While you might assume that leaving behind your home to your loved ones is relatively simple, you can do this in different ways. Your two main options are “joint tenancy” and “tenancy in common.” But what do these phrases mean, and how might they affect your estate plan?
Joint Tenancy Is the Most Common Type of Real Estate Ownership
Both joint tenancy and tenancy in common are types of property ownership in Florida. However, joint tenancy is the most common arrangement, especially when it comes to married or unmarried couples. Both individuals own the property together, and they both have the right to decide when to sell the property. They also have equal say when it comes to renovations and other changes to the property.
Perhaps most importantly, joint tenancy allows one partner to inherit the property automatically if the other passes away. This is called the “right of survivorship.” This process occurs without the need for probate, which is an expensive and time-consuming process in Florida. For this reason, many spouses and unmarried couples prefer joint tenancy. As long as you are okay with your spouse inheriting the property after you die, joint tenancy makes sense.
Tenancy in Common Allows for More Complex Estate Planning Goals
But what if you don’t want your spouse to inherit the property? What if you prefer to leave your half of the family home to someone else, such as a grandchild, nephew, or adult child? This goal is particularly common among spouses who have children from previous marriages. If you want to leave your children the equity in your home, you might be concerned that the wealth will never reach them through joint tenancy.
In this situation, you might want to consider tenancy in common instead. Under this system, both parties have the right to control who inherits their half of the home. You can leave this to whoever you want, although your beneficiary will need to go through probate before this wealth reaches them.
Which System Is Right for Me?
Joint tenancy helps spouses avoid probate, which is a major goal for numerous families throughout Florida. If you can avoid this process, many estate planning attorneys would advise you to do so. That said, tenancy in common offers much more flexibility – allowing you to create estate plans that meet your specific needs.
Can an Estate Planning Lawyer in New Port Richey Help With Real Estate?
Real estate is a common concern during estate planning in Seminole. Although it might be tempting to simply “play it by ear,” you may need to make various changes if you want your loved ones to get as much value as possible out of your home. When it comes to the choice between tenancy in common and joint tenancy, the right option probably depends on your unique circumstances. Discuss these circumstances with the Tampa estate planning lawyers at Knudsen Law today.
Source:
investopedia.com/terms/t/tenancy_in_common.asp
