Real Estate
“Joint Tenancy” is one of several ways you can take title (tenancy) to real property. A joint tenancy is created by the deliberate act of a property owner or owners, either during life by a deed or at death by a will.
The central characteristic of a joint tenancy is the “right of survivorship”. A joint tenant can never pass never pass his or her interest in a joint tenancy by will or by intestate succession. Upon the death of a joint tenant, the surviving joint tenant(s) automatically take ownership to the interest left by the deceased joint tenant.
Joint tenancy was born during the feudal period of Anglo-Saxon law. It survives today primarily as a substitute for a will, particularly with unmarried persons. Legal experts typically advise married couples to take title through “tenancy by entirety” which shields both spouses from claims a creditor has against only one. Joint tenancy does not afford the same protections. You would be wise to seek sound legal counsel before deciding whether joint tenancy gives you the best real-property protection.
If you decide to change the form of tenancy you hold title to your property in, it is easily remedied with a “Quit Claim” deed of trust. This instrument is best prepared by a title company or real estate attorney. Since it is a standard form, one page long, with fill-in the blank spaces, it is generally a very inexpensive process to complete. In addition, it is always a good idea to review this at the same time you review your estate planning. Some times having a family trust take title to property is preferable for tax planning purposes. So it really pays over the long run to make sure your interests and estate are in good order, particularly with all the recent changes to tax law.
If you would like to discuss what type of mortgage loan will work best for you, consult Dan Smith. Please call 303-674-2205 or stop by our new bank building at 3779 Evergreen Parkway, Evergreen, CO 80439 anytime!
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