| |
| |
|
Real Estate Information |
|
|
Estate Planning
Estate planning can enable you to control your property while you are alive, take care of you and your loved ones if you become disabled, and give what you have to whom you want, the way you want, and when you want, and if you wish, you can save every last tax dollar, professional fee, and court cost possible. Estate planners frequently begin the estate planning process by analyzing clients' personal and financial dreams, aspirations, fears and objectives. The financial side of this analysis usually begins with the following question: "What do you own and how do you own it?" More often than not clients say "I know what I own, but I do not know how I own it." The way that you own your property will greatly effect your estate plan. There are three frequently used forms of ownership of property: "fee simple," "tenancy in common," and "joint tenancy with right of survivorship." Fee simple ownership means that you own property by yourself as the sole and absolute owner. You can give it away, sell it, or keep it and control who will inherit it upon your death. Tenancy in common means that you own property with at least one other person. You do not own the entire asset. Let us assume that you and a friend own a 100-page book and that you own it as tenants in common. Each of you owns 50 percent of the book; that is, each of you owns fifty pages. Each of you could give your fifty pages to anyone you like while you are each alive. Each of you can leave your fifty pages to anyone at your death. In short, each of you is the absolute owner of each of your respective shares of the book. There is no limit to the number of tenants who can own something with others in tenants in common. Commonly two, three, or four people purchase property together, with each owning one-half, one-third, or one-quarter of the property. Joint tenants with right of survivorship is a very commonly used method of owning property. This form of ownership is commonly used but greatly misunderstood by the public. Let us assume again that you and a friend own a 100-page book. This time you own the book as joint tenants with right of survivorship. Unlike tenants in common where you each own 50 percent of the book, in joint tenants with right of survivorship you each own 100 percent of the book. Each of you owns the entire book. There is no limit to the number of tenants who can own something with others as joint tenants with right of survivorship. While you are alive, you can sell or give your part away. Such actions would change the nature of ownership of the property between the purchaser/recipient of the gift and the remaining tenants.The survivorship feature means that as each individual joint tenant dies, the deceased person's interest is automatically distributed by operation of law to the remaining joint tenants. This is what might be called the "winner takes all" game. Let us assume that four people own a beach house as joint tenants with right of survivorship. As long as more than one of them is alive, none of their wills or trusts will control the disposition of the beach house. If one of them outlives all of the others, she could distribute the house to whomever she wants at her death and totally exclude the others' families and loved ones. Tenants by the entirety is a special form of joint ownership that works the same as joint tenancy with right of survivorship. It is used in some states by a husband and wife to own real estate. For our purposes, think of this form of ownership as a special form of joint tenancy for a married couple. The married couple is viewed as one person. In summary, if you own property in fee simple you own it all, you can give it away, sell it or leave it to your chosen beneficiaries upon your death. If you own property in tenants in common you own part of it, you can give your part away, you can sell your part, and leave your part on death. If you own property in joint tenancy you own all of it with someone else, you can give your interest away, you can sell your interest but you cannot leave your interest on death. How do you own your property? Why do you own it the way that you own it? It is very likely that decisions regarding the form of ownership of your property were made by well intentioned others. Did the settlement attorney ask how you want to own your home? Did your real estate agent ask you this question? If he or she did, is your home titled the way you requested? When you went to the bank to open a checking account, did your banker discuss the various forms of ownership with you? When you opened your brokerage account, did your advisor discuss the importance and ramifications of account title? Chances are your settlement attorney, banker, and financial advisor titled your assets in joint tenancy with right of survivorship if your are married and in your sole name if you are single, widowed, or divorced. Make sure you know what you own and how you own it. Do your estate planning documents control your property? Make certain that what you own, how you own it, and your estate plan are consistent with your specific planning dreams and aspirations. Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Condo Hotels Offer Luxury and Great Investment Potential Not Your Typical Vacation HomeWhat could be more perfect that owning a luxury vacation home at a landmark resort and receiving rent revenue whenever you're not using it? Condo hotels are the newest trend in vacation home ownership. Live in it when you're there; rent it when you're not. The Key to Real Estate Investing Success Revealed! How did you get into real estate investing? Did you read a book on it? Was it a seminar? A meeting of some sort with speakers dispensing real estate investing information, but really selling courses? Did you get really, really jazzed and pumped up by these simple ("not easy") concepts that were delivered to you in parable form from the stage by a charismatic speaker?Did you find yourself levitating to the back of the room, powerless but to slap down your plastic to buy the kits that were being sold there? Like, "Yes Mr. Ker we do take traveler's checks. Law & Logic of Homeowner Association Capital Reserves In October 1999, Oregon was one of the first states that enacted a significant improvement to its Condominium and Planned Community regarding capital reserve planning, a process by which homeowner associations plan and fund future repairs and replacements. For many associations, the process became mandatory although there was an "escape clause" for pre-October 99 Oregon communities. Real Estate Investors Kick Away $1,000 Those new to real estate investing often fail to take actionbecause they don't have much cash. The truth is that thevery best investors got their start when they had little orno money. Why Use a Property Manager? Most experienced property investors use property managers. Why? Because they make you money. Selling Houses Fast: Basics of Design & Color Psychology Fixing up houses to ready them for sale includes a design plan for needed changes. Save money on transformation costs by choosing design details right the first time. What Are the Pitfalls of Marketing a Property Before Its Ready? Selling quickly is a high priority for some home sellers. A job transfer can prompt the need to relocate on short notice. Lake Property in Danbury A lakeside vacation or second home can be a quiet and relaxing place to escape to, or simply a good investment in your financial future. Whether you enjoy the outdoor activities and recreation provided by one of Connecticut's beautiful lakes, or you just want a place to get away from it all, there is a lakeside home for you in Danbury. The Devine Secrets Of The Ya Ya Lease Purchase Hood The biggest secret of conducting a successful lease purchase business is to have a plan. I know don't grown. Buying and Selling Real Estate: Negotiating to Win-Win You don't get what you deserve - you get what you negotiate for.If you've spent some time on homekeys. Selling Houses: Flooring & Feelings Buyers think they love Italian tile and other hard floor surfaces, but they actually feel happier when they're walking on softer surfaces such as padded carpeting and padded laminate. Even so, you'll want to give some serious thought to the floors in your home if you want to sell quickly, and for the highest profit. Ten Big Mistakes That Will Lose That Property Sale If you are serious about selling your home, you probably go to a huge amount of effort when you show potential buyers around your property. You clean the bathroom until it sparkles; vacuum the carpet; brew coffee or bake bread; maybe you even banish the kids to their grandparents, but did you make one of these Ten Big Mistakes that can lose the sale - but are so easy to avoid. If You Move Yourself You'll want to take some items in your own car when you move, and that's true whether you're hiring a mover or doing the job on your own. You'll hand-carry jewelry, medications, house plants, pets and a suitcase for each family member. Selling Investment Houses: Props & Profits New Marketing and Design Psychology ideas help you stage homes for sale to motivate buyers and generate top dollar. Instead of leaving investment houses vacant, my husband and I add a few props to increase our profits. Jacksonville Real Estate Listings With over 30,000 residents, Jacksonville in central Arkansas is a thriving city that offers many opportunities for both longtime residents and newcomers alike. About 20 miles from the state capital of Little Rock, the city is expanding in many ways. Investing in Real Estate Vehicle for Wealth Building Real estate is one of the best vehicles of building wealth. Historically real estate has outperformed other asset classes like stocks or bonds, and is reasonably predictable and less volatile. Victorian. Modern. Colonial. What's Your Architectural Style? You are attracted to a home for more than its number of bedrooms and square footage. Whether consciously or subconsciously, you are drawn to the individual character of a home. Home Inspectors: 5 Tips to Choosing the Right One Choosing the wrong Home Inspector can cost you a lot more than the fee you paid. If you choose a home inspector solely on price alone, your headed down a dangerous highway. Create a Great Webpage to Sell Your Home The majority of people in the UK who are looking to move house use the internet to find properties for sale. So it makes sense to ensure that your property is on the web if you want to sell. Real Estate Bankruptcy Although real estate bankruptcy cases no longer dominate the bankruptcy courts' dockets as they did in the early nineties, but they continue to be filed with great frequency in UK. At its essence, the real estate bankruptcy is a two party dispute between mortgagee and mortgagor.
|
| home | site map |
| © 2006 TIGER MEDIA |
