How you hold title to an asset is a simple act generally taken with no, or little, thought of the ramifications. But the ramifications can be huge! The reality is how you hold title to an asset is extremely important as it has a multitude of significant legal and tax consequences, many of which are generally not known to the public at large.
WARNING! It is critical to NOT change title to an asset without first having the proposed change reviewed by a competent estate planning attorney.
Owners of property can reduce to writing their particular agreement regarding an asset or assets. Some of the more common property agreements are:
This agreement will generally recite that certain assets constitute the separate property of an individual.
This agreement is signed by a married couple and recites assets that are to constitute their community property. This agreement may change the character of joint tenancy assets to community property if desired.
The owners of an asset titled as “Tenants-in-Common” may want to agree in writing to the rights and responsibilities of the co-owners to one another.
Co-owners of real property (whether owned as community property, joint tenancy, or tenants-in-common) may want to reduce to writing all of their understanding as to who will manage the property, how it will be managed, the rights of the parties during the time they own the property, and what happens if one of them no longer wants to own the property or dies.
These are agreements between people before they marry or after they marry which recite what assets and liabilities they have and what their rights will be as to the assets and liabilities they presently have and might acquire or incur in the future.
Our firm provides trusted estate planning services for Thousand Oaks, Westlake Village, Moorpark, Simi Valley, Agoura, Malibu and Calabasas as well as the rest of Ventura County and Los Angeles County. Please contact us today at 805-409-0108 if you need assistance with preparing a property agreement or to schedule an initial consultation.
Copyright © Family Security Law Group, APC. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. Some artwork provided under license agreement.