Our homes are probably the most valuable asset we own. Yet most people don’t think about how to hold title until the title company asks you when you purchase or refinance. But this deserves careful consideration, because how you hold title to real estate has far-reaching effects. This article explains some of the more common ways to hold title to your property. 

Tenancy By the Entirety:

This is a type of tenancy reserved for married couples. Both spouses have an equal and undivided interest in the property. This type of tenancy has a built in survivorship provision which automatically passes the title to the last remaining partner after the death of one of the parties to the marriage. 

Joint Tenants with Right of Survivorship:

This is similar to a Tenancy by the Entirety, however it is available to anyone and does not require a marriage. When one owner passes away, full ownership transfers automatically to the surviving owner without probate. All owners must sign closing documents to sell or refinance. 

Tenants-In-Common:

With this kind of ownership, each owner’s share will be distributed to their heirs at the time of their death, and does not automatically pass to other owners of the property. 

Hold Title in a Trust:

The title of your real estate can be held in the name of the trustee of your trust. There are various types of trusts, including but not limited to revocable trusts and irrevocable trusts. The purpose of a trust is usually to assist with the devising of property to your designated heirs at the time of your death. The settlor (the person establishing the trust) usually designates themselves as the initial trustee, which allows them to manage the assets of the trust. If you become incapacitated or pass away, the trust usually designates a successor trustee to step in and act for your trust. If you are married, you and your spouse can be co-trustees, in which case your successor trustee would step in only after you have both become incapacitated or have died. When you pass away, the property will be distributed without probate according to the instructions in your trust. 

Individual Name:

You can hold title in your individual name even if you are married. If yours is the only name on the title, the property will almost certainly have to go through the probate court system before it can be distributed to your heirs, even if you have a will. If your name is the only one on the title, and you have died, you can’t sign your name to transfer title. While there can be exceptions, in most cases the only way to remove your name and put the new owner’s name on is through the probate court.

Company Name:

If you have a company established, whether in Florida or elsewhere, your company can hold title to the property. This will prevent you from being able to claim the homestead tax breaks but will potentially avoid probate so long as there are other members of the Company. 

There are many different ways to hold title to the property you purchase, and it may be worth discussing with an attorney to see what is best for you and your family depending on your specific circumstances.