| OWNERSHIP OPTIONS
Q. What form of ownership is best for a home?
A. To take title to the home, ownership must be declared in one
of various ways. This may be as a single owner, joint tenancy, tenancy
in common, or tenancy by the entirety. Each offers various advantages
and disadvantages, depending on your personal situation. These options
are discussed below, and also in the sections on home ownership and wills
and estate planning.
Q. How is ownership affected if I live in a community property
state?
A. Community property states include Alaska, Arizona, California.
Idaho, Louisiana, Nevada,
New Mexico, Texas, Washington, and Wisconsin. If you live in a community
property state, state law holds that the property you bought while married
belongs to each member of the couple equally, no matter whose money actually
paid for it and regardless of whose name is on the title.
This provision generally applies to property acquired during the marriage,
rather than
property owned before the marriage or property that is inherited during
the marriage. But state
laws vary and you would be wise to discover how community property laws
in your state apply to any real estate purchase under consideration and
what form of ownership is best for your situation.
Options for Owning Property
Most married couples own property in joint tenancy or as tenants by
the entirety. There are other options and the option that is best
for you will depend on a variety of factors such as your estate tax
situation and provisions you may want to make for children, step-children,
or other relatives.
For example, couples who have children from previous marriages may
want their home equity
transferred to their children upon their death, rather than to the
spouse. Couples who are joint
tenants may want to provide in their wills for the distribution of
property if both die
simultaneously. Be sure to consult an attorney about the various advantages
and disadvantages of different types of ownership so that you can
make an informed decision about the form of
ownership that is best for you. |
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