This week, I thought we could touch on a subject that occurs with every real estate transaction, and that is how to hold title. Title is essentially the “proof” that you are the rightful and legal owner of a property; however, this is not something that is often discussed, especially with first-time homeowners. This article is meant to be a starting point for folks to use to consider how to hold title — please consult an estate planning attorney for individual-specific advice or your accountant for less nuanced advice. Let’s dive in and check out how people can hold title on their home!
The most common way to hold title on a single-family home is as tenants in common, where each owner possesses an undivided interest in the property. This allows for varying ownership percentages and flexible inheritance options. For example, if you and your sibling co-own a house as tenants in common, you might each own a 50% share. You can also specify how your share is passed on to your heirs in your will, giving you greater control over your inheritance.
Another common way to hold title is through joint tenancy with right of survivorship. In this arrangement, each owner has an equal share in the property, and upon the death of one owner, their ownership interest automatically transfers to the surviving owner(s). This simplifies the probate process, as the property doesn’t need to go through the legal system to be transferred.
Community property is a legal concept that applies in some states, such as California. In these states, property acquired during marriage is generally considered community property, meaning it’s owned equally by both spouses. Property acquired before marriage or inherited during marriage typically remains separate property.
Trusts can also be used to hold title on a property. Trusts can offer several benefits, including asset protection, privacy and tax advantages. They can also be used to ensure that the property is managed and distributed according to your wishes after your death.
Choosing the right way to hold title depends on several factors, including your marital status, your estate planning goals and the potential tax implications of each option. For example, married couples often choose joint tenancy with right of survivorship or community property, while individuals with complex estate plans may benefit from a trust.
It’s crucial to consult with legal and financial professionals before making any decisions about how to hold title on your property. An experienced real estate attorney can provide guidance on the best option for your specific circumstances and help you understand the legal and financial implications of each choice.
Understanding the different ways to hold title is essential for a smooth and secure ownership experience. By carefully considering your options and seeking professional advice, you can make informed decisions that protect your interests and align with your long-term goals.
This article appears in The Source Weekly January 23, 2025.
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Having been a real estate attorney for over 30 years, I find Mr. Keane’s article to be both blatantly incorrect as well as so cursory as to be misleading. Joint tenancy was abolished by state statute in Oregon many years ago, a fact of which he does not seem to be aware. Moreover, almost all married couples in Oregon hold title as “tenants by the entirety”, something he does not mention at all. Rather, he makes reference to “community property”, which does not even exist in Oregon. He also makes no mention whatsoever of individual ownership, domestic partnerships or how to properly create a survivorship estate. Shame on Source Weekly for allowing something like this to be published.