Estate planning:
Sharing your home
There are two ways that an unmarried couple can share
title ownership of real estate, and the choice you
make can have a big impact in how the property is treated
after the death of one of the owners. The first is owning it as tenants
in common. In this arrangement, each of you owns your share as specified
in the deed. If one dies, the deceased partner’s share becomes part of
his or her estate and is distributed along with the rest of the estate.
The surviving partner must negotiate with the new owner of the share
of the property to decide whether it should be sold or whether either
owner is in a position to buy out the other’s
share.
By contrast, in the arrangement known as joint ownership with rights of survivorship, if one of the joint owners dies, ownership of the whole property automatically goes to the remaining owner (or owners), without having to be transferred through a will. If you intend your partner to own the house after your death, this may be the better choice.
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