Have you ever wondered if you are doing right by your clients in how you have them take title to their new home or rental property? It’s a situation I encounter all the time as an estate planning attorney. You have the opportunity to make sure that your clients have all the benefits of correctly titled property and they will definitely thank you for it.
Why is titling property correctly so important to property owners?
First, if titled incorrectly, the property owner cannot control what happens to the property after he dies; second, if titled incorrectly, the owners and their heirs can lose the property to creditors, the government, or even an ex-spouse.
Three Common Ways to Hold Title:
Tenancy by the Entirety: Tenancy by the Entirety is the most common way for married couples in Oregon to hold property, but it ensures that there will be a probate upon the death of the second spouse.
Joint Tenancy with Rights of Survivorship: Joint Tenancy with Rights of Survivorship is a common way for UNmarried couples in Oregon to hold property, but it ensures that there will be a probate upon the death of the second joint tenant.
Tenants in Common: Tenants in Common is where each owner wants to maintain their interest in the property even upon death, but this can cause a lot of problems for the surviving owner.
The Best Way to Own Your Home – A Revocable Living Trust:
The best way for homeowners to own their property is in a revocable living trust.
- A properly drafted and funded trust will avoid time consuming, expensive and public probate upon the first death and the second death.
- A revocable living trust will make sure that the right people receive the property after the death of both owners and that it doesn’t go to creditors, predators, or future spouses.
The Best Way to Own Your Rental Property – An Asset Protection Trust or LLC:
The best way for your homeowners to own their property is in an asset protection trust or LLC.
- A properly drafted and funded trust or LLC will avoid time consuming, expensive and public probate upon the first death and the second death.
- A properly drafted and funded trust or LLC will make sure that the right people receive the property after the death of both owners and that it doesn’t go to creditors, predators, or future spouses.
- A properly drafted and funded trust or LLC will ensure that if renters or guests have a cause of action against the owner, the owner’s other assets are not vulnerable to being collected against.
- A properly drafted and funded trust or LLC will protect the assets inside of that entity from being vulnerable to lawsuits arising from other causes of action.
BOTTOM LINE: Your clients are going to need to talk to an estate planning attorney to determine the best way to title their property. Stand out from the competition by bringing these concerns to your clients' attention.
To your family's health & prosperity,
Candice N. Aiston
P.S. Want to get started on the most important planning you'll ever do for your family? Give our office a call at (503) 235-5150 to get started. You'll be glad you did.
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