Whether you are looking to buy or already own a house with another person, it is important that your deed includes specific language so title may seamlessly transfer after you or that person pass away.
Here are the two most common ways to own property in Georgia:
Tenants in Common: If one person passes away, their share goes to their family as stated in their will or by intestate laws. The other person’s ownership stays the same.
Joint Tenants with Right of Survivorship: If one person passes away, their share automatically goes to the other (meaning the survivor owns the whole house).
To be Joint Tenants with Right of Survivorship your deed must state your names and include “as joint tenants with the right of survivorship” or other similar survivorship language.
Owning property as joint tenants with the right of survivorship is important for married couples and essential for unmarried couples who want the surviving spouse/partner to seamlessly inherit. Here’s why:
Clarity of Ownership: Joint tenancy eliminates any ambiguity about who owns the property after one spouse's passing. The surviving spouse becomes the sole owner, and this ownership change is straightforward and clear.
Seamless Transfer: In this ownership form, the transfer of ownership is automatic and immediate. Upon the death of one spouse, the property ownership is simply transferred to the surviving spouse without the need for legal procedures or delays.
Avoid Probate for the First to Pass: Probate is the legal process that occurs after someone passes away to distribute their assets according to their will or state law. When a property is owned as joint tenants with the right of survivorship, it automatically passes to the surviving spouse without going through probate. This can save time, money, and stress for the surviving spouse and their family.
Emotional Comfort: Losing a spouse is a difficult time emotionally, and having the property automatically pass to the surviving spouse can alleviate additional legal and financial burdens during an already challenging period.
Depending on your specific goals, circumstances, and preferences, forming a trust might be a better way to accomplish the same outcome, especially if you wish to pass your real estate seamlessly to the next generation. Read more in our blog about revocable trust planning.
If you’re not sure what your deed says or if you have any questions about how to structure your property ownership, reach out to Bequest for a consultation today!