Page 17 - The Jewish Voice - December '23

The Jewish Voice, Page 17

Lifestyles from page 16 can be titled with the right of survivorship, but it is not choice fits into your estate plan, depends on the people and
the default and must be designated this way. property involved, your estate planning goals, and state
Co-Ownership and Home Titles Joint Ownership and Estate Planning laws where the property is located. An estate planning
Co-buying a home with a partner, relative, or friend Around 60 percent of Americans do not have a will, attorney from our office can explain the pros, cons, and
can reduce the costs of the downpayment, mortgage but the percentage without an estate plan is highest among consequences of each type of joint ownership to help you
payments, utilities, and other household expenses for each Millennials (78 percent) and lower among Baby Boomers decide which one best fits your situation.
buyer, while allowing them to build home equity. Some (58 percent). About two-thirds of Gen Xers do not have a Call or contact us today for help getting your estate
co-buyers may not even want to live in the home. Their will, while more than 80 percent of those age 72 or older planning house in order. Our phone number is 561-
goal may be to rent it out or flip it for a profit. do have a will. 4 694-7827, Elder & Estate Planning Attorneys PA, 480
Home co-ownership can present problems as well. If One of the top reasons cited for failing to address estate Maplewood Drive, Suite 3, Jupiter, FL 33458.
one buyer has a bad credit score, it can negatively affect planning is a lack of assets to leave to anyone. While this The content of this article is general and should not be
another buyer’s mortgage terms. And if one party cannot is often a myth — estate planning is advisable no matter relied upon without review of your specific circumstances
meet their financial obligations, the other party could be how many assets a person has — buying a house instantly by competent legal counsel. Reliance on the information
on the hook for the budget shortfall. changes this calculus. herein is at your own risk, as it expresses no opinion by
Typically, co-owners are not only listed together on the For most people, a home is their greatest investment the firm on your specific circumstances or legal needs.
mortgage loan, but on the home title. Having more than and the primary driver of household wealth. Even if An attorney client relationship is not created through the
one person on the title raises estate-planning issues that somebody co-owns a house, their investment in the information provided herein.
may not immediately arise but should be thought about. property is likely to dwarf their other accounts and To comply with the U.S. Treasury regulations, we must
Property can be titled in different ways. Common ways property. inform you that (i) any U.S. federal tax advice contained
of joint-ownership titling include tenants in common, Deciding what to do with shares of a jointly owned in this newsletter was not intended or written to be used,
joint tenants with right of survivorship, and tenants by property is a major estate planning consideration. And it and cannot be used, by any person for the purpose of
the entirety. begins at the time a property is purchased and the title is avoiding U.S. federal tax penalties that may be imposed
• Tenants in common. With this type of title, property issued. on such person and (ii) each taxpayer should seek advice
shares may or may not be divided equally between owners. When co-buying a house, each owner should from their tax advisor based on the taxpayer’s particular
Each owner’s share might be equal to their investment understand how it is being titled and make sure the titling circumstances.
in the property or the shares may be divided equally matches their estate planning wishes. For example, joint 1 U.S. Housing Market Needs More Than 300,000
among the owners. However, the co-owners still have tenancy might make sense for a married couple but be a Affordable Homes for Middle-Income Buyers, National
equal rights to use all areas of the property. They can also poor choice for friends or unmarried partners because they Association of Realtors (June 8, 2023), https://www.nar.
choose who receives their interest when they die; it does give up the right to leave the property to anyone other realtor/newsroom/us-housing-market-needs-more-than-
not automatically pass to the other owner(s). than the co-owner. 300000-affordable-homes-for-middle-income-buyers.
• Joint tenants with right of survivorship. Under this In the latter case, tenancy in common is likely a better 2 Zinhle Essamuah, Friends are buying homes together.
arrangement, each owner has an undivided interest in the option. Each tenant in common has the power to dispose of Here’s why., NBC News (Dec. 16, 2021) https://www.
property. They own the property in equal shares and have their property interest however they choose — but only if nbcnews.com/news/us-news/friends-are-buying-homes-
the right to use the property however they wish. The right they indicate their wishes in their estate plan. Otherwise, together-rcna9087.
of survivorship means that, when one of the joint owners their share of the property passes according to state law 3 Ben Luthi, What You Should Know About Co-Owning
dies, their property interest passes to the surviving joint when they die. a House, (Dec. 10, 2021), U.S. News & World Report,
owner(s). For those who already own a house, how the https://money.usnews.com/loans/mortgages/articles/
• Tenancy by the entirety. This title option works the property is titled is no less important to their estate plan. what- you-should-know-about-co-owning-a-house.
same way as joint tenants with Right of Survivorship but is Circumstances change. The original title terms may no 4 Haven’t Done A Will Yet?, AARP (Feb. 24, 2017),
only available to married couples in certain states. It also longer reflect a person’s current priorities. While changing https://www.aarp.org/money/investing/info-2017/half-
provides valuable creditor protection because property a joint tenancy may not always be possible or practical, of-adults-do-not-have-wills.html.
owned in this way is not subject to the creditors of just at the very least, a person should know how a home title
one spouse (although it may be subject to the claims of a affects their property rights, the rights of any heirs, and Lifestyles on page 18
creditor of both spouses). tax obligations.
In states with community property, another type of Get Your Estate Planning House in Order
joint ownership for married couples, co-owned property Choosing how to title a co-owned home, and how this

“Whether buying or selling a home I will treat you

like I would treat my own mother.”

Andrew Levy

Andrew Levy 3 3 3 3
561-891-9262
7100 Fairway Dr. Suite 44
Palm Beach Gardens, FL 33418