Having a clear understanding of how your property is titled can reduce confusion during the probate process. Also, making adjustments to your will as your finances change can help your beneficiaries collect their inheritances without complications. These basics about ownership, along with advice from your attorney, will keep you prepared, no matter the circumstances.

What Is Sole Ownership?

Sole ownership is when a single person owns a property. When the owner passes, unless there’s a transfer on death (TOD) designation, payable on death (POD) designation, or other beneficiary designation on that asset, the property will go through probate before being transferred to the inheritors named in the will. 

In cases where an inheritor isn’t named, the recipient will be determined according to state law. Typically, the property passes on to the deceased’s surviving spouse or children. If the deceased doesn’t have any surviving relatives, the property passes to the state.

What Is Joint Ownership?

Joint tenancy (shared ownership) with rights of survivorship means that if one owner of a shared property passes away, the surviving owner has sole ownership. Alternatively, tenants in common, owners share the property (doesn’t have to be equal percentages) and each owner can pass on his or her shares to a person of their choosing. 

In Tennessee, there is a third type of joint ownership available: tenancy by the entirety. Tenancy by the entirety is similar to a joint tenancy but is reserved for married couples only. The benefit of tenants by the entirety ownership is that creditors of one spouse cannot attach the property. Only when both spouses owe a debt to a creditor can the creditor attach the property.

How Can You Avoid Probate in Tennessee? 

In Tennessee, creating a living trust can keep properties from going into probate. A property owner can work with an attorney to create a trust document naming the terms, including the trustee and beneficiaries. 

While the owner is living, they’re the trustee. After they pass, the property is controlled by the named trustee, who will transfer the property to beneficiaries without any need for probate proceedings in court.

Plan for the future with the knowledgeable attorneys at Trailhead Estate Planning in Signal Mountain, TN. They specialize in estate planning, elder law, and special needs law. Whether you’re looking to create a revocable trust, leave a legacy for your children or spouse, or find ways to preserve your existing assets, you can count on this dedicated team to find you personalized solutions. For more information, call (423) 228-7029. Discover more about their estate planning services online.