When it comes to end-of-life decisions, hospice care or the funeral service are important considerations. However, it’s also important to think about the financial implications of your passing, such as who will inherit the real estate you own. To get started on your estate planning to-do list, use the following guide to learn the difference between sole and joint ownership and how this distinction may affect your choices.

Sole Ownership

In a sole ownership situation, a single person owns a piece of real estate, and they haven’t designated anyone that the property should be transferred to when they die. In addition to real estate, this term can also be used for bank or investment accounts.

If you are the sole owner of a home or building, your name will be in “fee simple absolute,” which means you are entitled to 100% of the property. In this case, even if you know who you’d like to inherit the property when you’re gone, the asset will have to go through the probate process in the applicable circuit court. This may require weeks or months of a judge’s deliberation to authenticate a will and distribute your estate. If you didn’t mention the property in your will, state law will govern the inheritance.

Joint Ownership

In the case of joint ownership, more than one person owns a piece of real estate, and they each have equal shares. This form of ownership may or may not include “rights of survivorship,” which states that the surviving owners should continue to own the property once one owner passes away.

The remaining owners would split the decedent’s share equally, so they would still have equal shares. If both owners want to sell the property, they must both offer their official consent—no one owner may sell without the other’s approval. With “right of survivorship,” real estate doesn’t have to go through probate to be transferred.

In Virginia, joint ownership falls into two categories: joint tenancy and tenancy by the entirety. In the former, property is automatically given to surviving “tenants” (which means owners) when one tenant dies, whether the property is a home, a bank account, or a car. Tenancy by the entirety is similar to joint tenancy, except the owners must be married couples.

If you’d like help with the many details of estate planning, turn to PoindexterHill, P.C. of Waynesboro, VA. Since 1976, this team of lawyers has worked hard to assist clients in a wide range of practice areas, from criminal defense to probate administration. To start planning for the future of your estate, call them at (540) 943-1118 and schedule a consultation. Visit the website to learn more about their far-ranging skills.