One of the many decisions you will be obliged to make when purchasing a property is how you are going to hold title to the property. This decision has a lot of potential legal, tax and estate-planning consequences. Each state has its own legal requirements and regulations. Therefore, the state where the property is located, as well as the state where the property owner lives, could determine the vesting options. It is likely a wise idea to consult with your attorney or tax advisor to assist you in making this important decision.
Jessica Hallenbeck, Realtor, Signature Real Estate Group and Nikita Burdick, Esq., Attorney, Burdick Law, help us understand the process on how to take title of ownership and tackle other questions surrounding this topic such as probate, trust, and estate planning.
Jessica Hallenbeck, Realtor, and Nikita Burdick, Attorney, talk about the common ways to hold title in Nevada when buyers take ownership of title when purchasing a new home. When the buyer is nearing the close of escrow date the escrow officer will ask how do the buyers wish to take ownership title. Nikita Burdick at Burdick Law explains the different types of home ownership and the pros and cons of each.
Title can be taken between a husband and wife as community property which declares the home as an asset split between the two 50/50. Tenants in common, both parties own the property 50/50. Joint Tenancy with the right of survivorship, both parties own the property together, if one person passes then the ownership will transfer to the surviving spouse and may avoid probate court. With community property and tenants in common vesting, if one or both owners pass the property will have to go through probate court. How do owners avoid going through the probate process in the event of a owners passing? Putting your home into a trust is the only way to avoid probate court. The distribution language can be worded of your wishes in advance.
Other ways of ownership not mentioned are, as sole ownership; a single man/ woman, a married man/ woman as his sole and separate property, a domestic partner as his/ her separate property. Sole ownership will not avoid probate court without the owner putting it into a trust.
If you have questions about probate, trust, and real estate please feel free to reach out to Nikita Burdick, Esq at Burdick Law 702-481-9207 NBurdickLawNV.com or Jessica Hallenbeck, Realtor, Signature Real Estate Group 702-525-3813 HallenbeckTeam@gmail.com.