The Last Will and Testament
Tomorrow is not guaranteed, so we need to live for today. But, we also need to protect those we leave behind today, tomorrow may be too late, especially if you live in a non-community property state like Maryland.
In Maryland there are three ways people can hold title to a home. We learn about these in our real estate pre-licensing class but many agents don't fully understand the impact of how you hold title to your home.
Tenants in Common - two or more people own equal or unequal shares in a home and upon death, those shares pass to the heirs of that individual or their estate.
Tenants by the Entirety - a married couple owns a home together with the right of survivorship of the other spouse.
Joint Tenancy - is when two or more co-owners simultaneously have an interest in the whole property, as well as a separate, undivided individual interest. Each Joint Tenant enjoys a shared right of possession to the whole property while holding title to a portion of it. Joint Tenancy requires that the Joint Tenants acquire their interests at the same time, by the same deed or will, and in equal interests. The hallmark of Joint Tenancy is a right of survivorship. When one Joint Tenant dies, by operation of law the decedent’s interest is automatically transferred proportionally amongst the surviving Joint Tenants. The intent to form a Joint Tenancy must be clearly expressed in the instrument. If the instrument does not contain the words “Joint Tenants” or “Joint Tenancy,” it must otherwise clearly state a right of survivorship.
When you own property these terms become very important in death. How do you and your spouse or partner hold title to your marital/familial home? What you intend for your surviving partner and the ownership of your property must be written down in order for it to mean anything and to hold up in court should you pass away.
As agents we also need to be asking how couples plan to take title to a home upon purchase so we can properly instruct the title company or add it to an addendum in the contract of sale.
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