When people purchase real estate, they acquire title rights. They sign a deed that includes specific language about their ownership arrangements. Many people hold title in a simple manner. They simply include the names of all owners on the deed as joint owners.
There are several other ways to hold title that offer different rights and protections. Some people co-owning real property choose to hold title as joint tenants with rights of survivorship. In fact, those who have previously purchased real estate may execute a new deed to adjust how they hold title.
Why do many people prefer this unique form of holding title in some cases?
The desire to bypass probate court
In many cases, the main reason people hold title as joint tenants with rights of survivorship is to avoid probate complications. The property owned by a deceased person becomes their estate. A co-owner’s interest in the property could pass to their heirs or beneficiaries and could cause complications for their surviving co-owner.
Those who hold title as joint tenants with rights of survivorship do not have to worry about the house passing through probate court or outside parties asserting an interest in the property. If either owner dies, the surviving owner automatically receives their interest in the property. Such arrangements are beneficial for spouses, unmarried romantic partners and even parents living with adult children who act as their caregivers.
Exploring different ways to protect real property holdings can help people manage what is often one of their most valuable investments. The way that owners hold title can have a direct influence on property rights after they pass.
