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How Property is Titled
Karisha DevlinAgricultural Business Specialist
Title Ownership Land Livestock Machinery Other property
Classifications of Property Real
Land Homes, buildings
Personal Tangible Intangible
Major Factors that Influence Choice of Ownership
Preferences as to sole ownership or co-ownership
Desired disposition of property at death
Estate and inheritance tax effects Gift tax implications Differences in estate settlement costs
Forms of Property Ownership in Missouri… How you own property
makes a large difference in planning for your retirement income and for doing your Estate Planning.
First, you need to know how property can be owned.
Forms of Property Ownership in Missouri…(con’t)
Property can be owned solely or in different ways of concurrent ownership. tenancy by the entirety (spouses only) joint tenants with right of survivorship
(JTROS) tenants in common
Tenancy by the Entirety.. Can only exist between husband and
wife
Each one owns an undivided 100%
Surviving spouse automatically gets the whole property
Tenancy by the Entirety When first spouse dies, estate is
transferred to surviving spouse, normally without any probate or estate tax.
However, after surviving spouse dies, probate or estate tax can become a burden on remaining heirs.
If surviving spouse remarries, this all changes.
Joint Tenants with Right of Survivorship (JTROS)… Can be between any 2 or more
persons
All have to own equal “shares” in the asset
Last person surviving automatically gets 100% of property
Joint Tenants with Right of Survivorship (JTROS)…
Person can “give” their interest away during lifetime but it’s not inheritable (unless they’re the last one)
Remember if “wrong” one dies first, his/her heirs have no legal claim
Joint Tenants with Right of Survivorship (JTROS)… Advantage – avoids probate. Difficult for
liability and health care claims to be paid out against this property.
Disadvantage – not inheritable unless you are the last one living. Also very limiting on what you can do with your property. May force issues with people who do not get along.
Tenants in Common… This is when 2 or more persons own
an undivided interest in property
They do not have to own equal portions in property
Each person can determine who inherits their part
Tenants in Common… This is an especially good estate
planning tool in large estates where estate tax is an issue.
Husband and wife can each plan their portion of the estate how they wish.
