One large part of estate planning is determining what to do with real estate upon your death. This issue can become complex, depending on whether or not you have sole ownership of the property. This overview explores the differences between sole and joint ownership, so you can make a more informed decision about how your real estate should be handled.

Do You Have Sole Ownership? 

Generally, if yours is the only name on the deed, you’re considered a sole owner of the property. However, there may be liens, or claims, against the property that can affect your ownership of it. A real estate lawyer can help you determine if this is the case. Once these liens have been resolved, a clean copy of the deed will include the phrase “fee simple absolute,” which means you have 100% sole ownership of the property. This will ensure that the ownership won’t be automatically transferred to another person, or entity, upon your death.

How Does Joint Ownership Affect Estate Planning? 

In Pennsylvania, there are three types of joint ownership of real estate and each type will affect how you go about estate planning: tenants in common, right of survivorship, and tenants by the entirety. These types of property ownership are mentioned below.

Tenants in Common

Two or more parties are listed as co-owners on the deed and each person holds an equal share of interest in the property. This entitles each person to make full use of the property, including the right to sell their share. A co-owner of this type can also leave their share to an heir and, if they die intestate, their share of the property will also pass on to an heir.

Right of Survivorship

When you co-own a property with the right of survivorship, you cannot choose an heir to inherit your share in the property. Instead, your share will be passed onto the other co-owners. This process will continue until there is a sole owner of the property. Once there is a sole owner, that individual will have the right to dispose of the property as they choose.

Tenants by the Entirety

This type of ownership is strictly reserved for married spouses, but incorporates the right of survivorship. While a mutual agreement or divorce can dissolve the right of survivorship, it will endure in any other circumstances. Tenants by the entirety ensures that a spouse cannot lose their home as a result of the other spouse’s creditors making claims against the estate in probate.

An estate planning attorney can help you determine how your ownership of real estate will affect your ability to pass it on to your heirs. Achille Law, P.C. is located in Brookville, PA, and the firm has experience in transferring real estate on your behalf to loved ones through a comprehensive estate plan. To schedule an initial consultation, call (814) 849-6701. Visit them online to browse their services.