When it comes to estate planning, the ownership of your assets will play a significant role in how you can distribute them. This is especially true when it comes to real estate. Ultimately, the way real estate can be distributed during the estate planning process will depend on how the title to the property is assigned. Consider the guide below to learn about two types of property ownership.

Sole Ownership

Under sole ownership titles, a piece of real estate is owned by a single person. The title lists that person’s name and does not include any designation for transferring the title upon the death of the property owner. 

In these situations, you can designate how you want your real estate to be distributed in your will. Though the property will likely have to go through probate for the title to be transferred, you can choose who inherits it upon your passing. If you don’t designate this as part of your estate planning, state law will decide who inherits the property. In Texas, this is either your spouse or next of kin, such as a child or parent.

Joint Ownership

In cases of joint ownership, real estate distribution gets a bit more complicated. If your title is listed as having joint ownership with rights of survivorship, it means that you and the other person named on the title each own 50% of the property. When one of the owners dies, their share of the ownership passes to the other person listed on the title. However, you can create a clause in your will that would pass your percentage of the property to another person.

Though less common, joint ownership with “tenants in common” is often assigned when two people own unequal shares of a property. With this type of title, you can transfer your share of the property to a named beneficiary, but you cannot reassign the portion owned by the other titleholder. This is true even if you own a higher percentage of the property.

Whether you have questions about estate planning or other family law matters, you can trust Ronald D. Zipp Attorney at Law in New Braunfels, TX. With over 40 years of legal experience, the team at this law firm will offer quality representation that helps you develop a sound plan for your future. To learn more about their practice areas or to schedule a free initial consultation with an attorney, visit them online or call (830) 629-5600 today.