Estate planning and your family home: What to know

There are several different ways married couples can be listed on the title of a home. How you and your spouse are listed can have a significant impact on your estate plans.

More than likely, you and your spouse either have a joint tenancy or a tenancy in common on your family home. Each of these has unique implications.

Joint tenancy comes with the right of survivorship

Joint tenancy means that you and your spouse have equal shares of the property with the right of survivorship. If either of you should pass away, the other will automatically become the owner of the entire property. This will automatically bypass the probate process, which is why it is often a popular choice for couples who have shared their lives together and have no children outside of the marriage.

Tenancy in common creates separation in ownership

When a home is held as a tenancy in common, each co-owner owns a specific share of the property (which may or may not be equal). In addition, there is no automatic right of survivorship. In other words, either of you can pass your share of the property to different heirs or even sell your share independent of the other. In addition, the house must go through probate unless some other way to avoid that process, such as a trust, is arranged in advance. This option offers more flexibility and is often used by couples who are on their second marriages or when there are children they do not share.

When putting together your estate plan, it’s essential to understand how your family home is titled and what that ultimately means for your estate. Experienced legal guidance can help ensure that you fully understand your situation and your options.