Here is a brief overview of each type of property ownership:
Sole Ownership - Sole ownership of property means that it is owned by one person in his or her individual name and without any transfer on death designation. For real estate that is titled in one individual's name in " fee simple absolute," meaning that the individual owns 100% of the property in his or her sole name without the remainder being transferred to someone else after the individual's death.
Joint Ownership - Joint ownership comes in two forms, with rights of survivorship and without rights of survivorship.
- Joint ownership with rights of survivorship means that two or more individuals own the account or real estate together and after one owner dies, the remaining owner(s) continue to own the property. Joint ownership without rights of survivorship means that two or more individuals own a specific percentage of the real estate, such as one individual owning 80% and a second individual owning 20%. Joint ownership of property without rights of survivorship is referred to as owning the property as & quote; tenants in common & quote.
- Title by Contract - Title by contract refers to property that has a beneficiary named to receive the property after the owner dies.
Once you understand the three types of property ownership, you will need to understand who will inherit each type of property after the owner dies. In this sense, property can be viewed in two ways: probate assets vs. non-probate assets. Probate assets are simply that - assets that will need to go through court-supervised probate after the owner dies. In other words, after the owner dies, the only way to get the asset out of the deceased owner's name and into the name of the deceased owner's beneficiaries is to take the asset through probate. Probate assets include sole ownership property and tenants in common property (or property owned jointly without rights of survivorship).
Non- probate assets are simply that -After the owner dies, other owners or beneficiaries will take over control of the deceased owner's property simply because they survived the deceased owner. No probate assets include property owned jointly with rights of survivorship (including tenancy by the entirety property and certain community property. So where do probate assets go after the owner dies? This will depend on whether the owner has, or does not have, a last will and testament. If the owner has a will, then who will inherit the owner&s probate assets will be determined by the will. It is made out to be important to create a will and smooth out the process of the ownership of the property after death for your loved ones. The solicitor also could not help sometimes if there is a confusing ownership claim. Creating a will is a way to make things easy.