More Information

1. Definition of a Deed
2. Common Transfer Types
3. Choosing a Vesting
4. Common Deed Types
5. What is Probate? Choosing a Legal Vesting (Requirement for all deeds)
A vesting is a method of holding title to your real estate. A vesting is usually required every time you file a deed. Each vesting is unique and has both positives and negatives. Some allow the owners to avoid probate and others do not. Below is a brief overview of the most common vestings.

• Sole Ownership (Probate required if owner passes away)
  When property is owned by only one person it is considered as sole ownership. No special vesting or indication on the deed is necessary. If the sole owner passes away the property must be probated in order for the heirs to inherit the property. Click Here For Examples >
  
  Probate is a special court that supervises and determines how a deceased person’s estate is to be distributed. The probate procedure should be processed by an attorney and may take years to complete. Probate can become an expensive and time consuming process that can be avoided by creating a Living Trust, adding a Joint Tenant, or creating a Beneficiary Deed. The beneficiary deed is only available in some states.



• Joint Tenancy – Must have at least two (2) owners (No Probate if owner passes away)
  Joint tenancy requires two (2) or more owners and all owners must take ownership in equal percentages. An advantage of joint tenancy is avoiding the costly and time consuming probate court process in case a joint owner dies. Once a joint tenant passes, the ownership is divided equally to the surviving owner(s). A joint tenant cannot will his ownership since it is automatically distributed to the surviving owner(s). However, a joint tenant still has the right to sell his/her interest. Joint tenancy is the most common and popular choice for a vesting. Click Here For Examples >



• Living Trust (No Probate if owner passes away)
  This vesting can only be chosen if you are transferring your property into your living trust. A living trust is an estate planning tool that provides instructions on how the property will be transferred upon death.
  
  The major benefit of a living trust is that it will avoid the probate process. An owner must transfer his/her property into the living trust in order for the trust to take effect. Click Here For Examples >



• Community Property with Right of Survivorship (No Probate if owner passes away)
  Community property refers to all property owned by husband and wife during their marriage. This vesting is specifically reserved for property owned by husband and wife.
  
  In the event of a death, the Community Property with Right of Survivorship vesting will automatically transfer the property to the surviving spouse without probate. This vesting is only available in California, Nevada, Arizona, Alaska, Texas and Wisconsin. (Not intended to be a complete list; Laws are subject to change)
  
  Note: Since there is right of survivorship, the property cannot be willed to anyone else. Upon death the property will automatically belong to the surviving spouse.Click Here For Examples >



• Community Property (Probate required)
  Community property refers to all property owned by husband and wife during their marriage. This vesting is specifically reserved for property owned by husband and wife.
  
  Property held in this manner must go through the probate process in the event of death because there is no right of survivorship clause. If the property is located in California, Nevada, Arizona, Alaska, Texas or Wisconsin, a property owner could use the Right of Survivorship version of this vesting in order to avoid probate. Click Here For Examples >



• Tenants in Common – Must have at least two (2) owners (Probate required)
  A tenant in common occurs when two (2) or more people own property jointly and have the right to will or sell it. Tenants in common can have equal or unequal percentages of ownership.
  
  Tenants in common do not have right of survivorship. In case of an owner’s death, the property will need to go through the probate process. This could be a major drawback since probate can be very costly and take months to years to complete. Click Here For Examples >