Joint Tenancy Explained

Living Trust

A trust is an arrangement in which one or more people manage or take care of property for someone else's benefit. A living trust is a trust that is created during your lifetime. In other words, while you are still alive, you transfer title to your property from your name to that of the trustee of the living trust. You can use the trust to gather your property under one document, so that the property is distributed efficiently after your death.

Public Notary

A Notary Public is an official of integrity appointed by state government —typically by the secretary of state — to serve the public as an impartial witness in performing a variety of official fraud-deterrent acts related to the signing of important documents. These official acts are called notarizations, or notarial acts. Notaries are publicly commissioned as “ministerial” officials, meaning that they are expected to follow written rules without the exercise of significant personal discretion, as would otherwise be the case with a "judicial" official.

Loan

Written or oral agreement for a temporary transfer of a property (usually cash) from its owner (the lender) to a borrower who promises to return it according to the terms of the agreement, usually with interest for its use. If the loan is repayable on the demand of the lender, it is called a demand loan. If repayable in equal monthly payments, it is an installment loan. If repayable in lump sum on the loan's maturity (expiration) date, it is a time loan. Banks further classify their loans into other categories such as consumer, commercial, and industrial loans, construction and mortgage loans, and secured and unsecured loans. Read more: http://www.businessdictionary.com/definition/loan.html

Joint Tenancy Explained

Most people immediately think of the right of survivorship aspect of the Joint Tenancy, which allows the shares of a property to be transferred to the surviving partner. However, there is a bit more to Joint Tenancy.

To start a joint tenancy there specific requirements that have to be met, starting with time, interest, possession, and title. Meaning that the owners must become join tenants of the same deed at the same time and take possession of the asset at the same time. Owning property using a joint tenancy has its advantages that we will outline below.

Profits and Rights to Rent

Joint tenants are generally given a share of the rent and any other profits that the property may receive.

Avoiding Probate

If one of the partners in the Joint Tenancy passes away and that partner has few additional assets at the time of their death, having a joint tenant with the right of survivorship may allow the late individual’s estate to avoid probate. Most states have a small estate statute that allows a survivor to bypass the process when the probate estate is under a specific value.

Right to Surviorship

A Joint tenancy allows the other tenant to inherit the decedent’s share at the time of passing. This typically involves a process that is automated and requires minimal paperwork to transfer.

Durable Power of Attorney

Living Trust

Public Notary

Estate Planning

Loan

Joint Tenancy Explained