Understanding the three types of shared ownership in Massachusetts.
Today, we'll explore the concept of joint ownership of real estate properties in Massachusetts, a scenario often involving multiple owners. There are three primary types of joint ownership, each with its unique implications, especially concerning what happens when one of the co-owners passes away. 1. Tenants in common. In this arrangement, each owner has the right to possess the entire property, similar to their co-owners. However, when a tenant in common passes away, their share of the property becomes part of their probate estate. This type is default if the deed doesn't specify the joint tenancy type. 2. Joint tenants. Joint tenants enjoy the right of survivorship. If one joint tenant dies, the surviving joint tenant automatically inherits the entire property. It's crucial for individuals to explicitly state that they hold the property as joint tenants to establish this type of ownership.
"Choosing the right type of joint ownership ensures a smooth transition of property and protects the interests of all parties involved."
3. Tenancy by the entirety. Reserved exclusively for married couples, tenancy by the entirety provides the right of survivorship. When one spouse passes away, the surviving spouse automatically becomes the sole owner. This arrangement also offers protection against the creditors of one spouse. A deed for this type of ownership must explicitly state that the property is held as tenants by the entirety. In addition to the right of survivorship, tenancy by the entirety provides a level of protection for spouses against each other's creditors, making it a preferred option for married couples. Understanding the nuances of joint ownership in real estate is crucial for anyone involved in such arrangements. Whether you have questions, thoughts, or concerns about real estate matters, don't hesitate to call or email us for expert guidance.
