When it comes to property ownership, one can choose to go for sole ownership, joint ownership, or ownership by nomination. Insole ownership or individual ownership, a person who has bought the house is named as the owner of the house. Whereas, in ownership by nomination, a person is nominated as the titleholder of property by someone else. In Joint ownership, more than one person holds the ownership title of a property. Joint ownership can be further categorized into various types. If you are considering purchase properties or need help managing assets, you must consult tax attorney Virginia Beach to explore the best ownership title options.
What is Joint Tenancy?
When two or more people own and control a property or asset together, it’s considered as a joint tenancy ownership title.
With equally shared proprietorship, this implies that by law when anyone joint tenant dies, they will no longer be the owner of their property. All things considered, the dead tenant’s share of the estate will pass on to the surviving tenant.
This kind of property proprietorship is frequently utilized by couples and entrepreneurs. Under the appropriate conditions, joint tenure aids the co-proprietor by keeping the property outside of the probate.
Can Joint Tenancy help one Avoid Probate?
Probate is the court process where you need to demonstrate the legitimacy of a will after an individual has died. Besides, recipients of a will should demonstrate that they qualify to inherit the estate.
Since the probate process is time-consuming, costly, and exhilarating, people often look for ways to dodge the process.
The rights of survivorship clause in the joint tenancy make it an ideal option for estate owners looking for ways to avoid probate. Common properties held under joint tenancy usually include cars, bank accounts, houses, real estate, etc. According to the law in Virginia, each member in joint tenancy must hold the rights to equal shares of the property. In other terms, losses and revenue incurred from the property must be split equally. If this is not the case, the owner will be considered as a tenancy in common. If you are entering into joint tenancy ownership, consulting a property tax lawyer will help you make an informed decision.
Joint Tenancy Options
Joint Tenancy Safe Deposit Boxes
In case you’re searching for a joint tenancy alternative where you can co-possess and approach things you put and store away, a joint tenancy safe deposit box can be an ideal choice. With this, you’ll have the option to keep all the essential documents, for example, wills, home, and burial service directions. Besides this, you can store other items like family gems that you might want to pass down to your surviving family.
Joint Tenancy Bank Accounts
In the event that you have a family and you might want to share a bank account with your partner, you have the alternative of making a joint tenancy bank account. To do so, you will simply have to go to your bank, create an account and sign the documents under Joint Tenancy With Rights of Survivorship (JTWROS). Just like the property, all cash in the account will get automatically transferred to the surviving partner in the event of one’s death.