Page 12 - Jupiter West - August '21

Page 12, Jupiter West
Why Title Matters

Submitted by Anné meaning that no one person can claim ownership of a revocable trust, then you will have the utmost freedom to
Desormier-Cartwright, J.D. specific portion of it. Yet the ownership does not have manage and use the real estate if you appoint yourself as
Real estate can take on to be equal. One person can own a 25 percent interest the trustee and name yourself as a beneficiary. But if it is
different forms of ownership (i.e. “share”) while the other has a 75 percent ownership in an irrevocable trust for asset protection purposes, the
depending upon the number interest. Each co-owner is free to transfer or mortgage selection of the trustee and beneficiaries becomes more
of parties and the unique their interest as they wish. However, the more co-owners, complicated. While a primary residence can be transferred
circumstances involved. the higher the possibility for creditor issues. Although to a trust with or without a mortgage, other properties with
Understanding how your real creditors can only collect from the co-owner that owes a mortgage might first require bank approval before it can
estate is owned, or “titled,” them money, they may be able to force a sale of the real be transferred to a trust. One of the primary benefits of
is necessary because this estate to satisfy their claim. Upon a co-owner’s passing, transferring ownership of your real estate to a trust is that
determines the extent of their ownership interest will transfer to whomever the at your death, the real estate does not have to go through
control you have over your co-owner has specified in the owner’s will or by state law the probate process. This is because the trust, not you, is
real estate, how susceptible your property is to creditors, and if no estate plan was prepared. Both options require the the owner, and the trust can never die. In most cases, the
what will happen to it upon your death. Below are some of real estate to go through the probate process to transfer trust document will provide instructions about what will
the common ways in which real estate is owned. ownership to the co-owner’s heirs. happen to the real estate upon your death.
Individually Joint Tenancy By A Limited Liability Company
One of the most common ways people own real estate For this type of ownership, also known as “joint Another entity that can own real estate is a limited
is individually. As the sole owner, you have full control tenancy with right of survivorship,” two or more liability company (LLC). Instead of owning the real estate,
over the real estate. You can transfer it to anyone and individuals own an equal and undivided interest (share) in you own a part of the LLC (known as a membership
can mortgage it. However, although the bankruptcy the real estate. When one of the owners dies, their interest interest), and that is what will need to be transferred upon
code offers some protections for personal residences, automatically passes to the remaining co-owners, and the your death according to the terms of an operating agreement
should you have creditor issues, the real estate could be survivor(s) continue to own the real estate. Each co-owner or estate planning documents, or based on state law if there
vulnerable to being taken to satisfy debts or creditors’ is able to transfer their interest to another person, but the is no will or trust. In the LLC operating agreement, you can
claims. Additionally, at your death, the real estate will new co-owner does not become a joint tenant (with right also include rules instructing how the real estate is to be
be transferred to the individual(s) named in your will of survivorship) but rather a tenant in common (whose used and managed, as well as outline the rules pertaining
(or trust) or according to state law, both of which will interest does not automatically transfer to the surviving to the membership interests in the LLC. One of the major
require probate court involvement to transfer ownership owners upon their death) with the original co-owners. One benefits of using an LLC is that it provides limited liability.
to your heirs. This can be a time-consuming, public, and downside of joint tenancy is creditor exposure. Because If a lawsuit is filed based on a claim arising from the real
expensive process for your loved ones (especially if the there are multiple co-owners, creditors of any of the co- estate, or if a creditor seeks to satisfy a claim, the only assets
real estate is very valuable). owners can go after the co-owner’s interest in the real available to satisfy any judgments or creditors are those
Tenants In Common estate to satisfy their debts or claims. The creditor may owned by the LLC. In many states, if you have personal
When several people own real estate as tenants in be able to force a sale of the real estate, even though the creditor issues, the creditors are limited as to what they can
common, the entire property is owned by the group, other co-owners may be against it. As mentioned before, reach inside the LLC to satisfy their claims. It is important
a benefit of this type of ownership is that ownership is to note that the asset protection benefits of an LLC can vary
transferred automatically at death, avoiding probate.
depending on state or federal law, or your unique situation.
Three Ways To However, if you become the sole owner, then you will face If this is a concern for you, we encourage you to call us as
soon as possible.
the issues associated with owning real estate individually.
Start School Tenancy By The Entireties Give Us A Call Today!
Regardless of how you think you own your real estate it
In some states, real estate received or purchased by
is important that you review your documents and confirm
spouses can be owned as tenants by the entirety. Although
Strong some of the applicable state laws still refer to the parties your understanding with an experienced attorney. The
title of your real estate can play a large role in how your
as husband and wife, with the proper language in a deed,
which clearly demonstrates the desire to own the real
estate plan is set up, and if your real estate is not titled
estate as tenants by the entirety, all individuals who are properly, it can completely undo your intent for your
By Jim Forgan, Ph.D., legally married at the time they receive the real estate estate planning. Give us a call today so we can review
School Psychologist are able to own it as tenants by the entirety. This type your deeds and create an estate plan that will protect your
Most kids start of ownership can apply to any real estate, not just the property for future generations.
school with the intention primary residence. Because spouses are considered one If you have questions about your estate plan and what
of having a great year unit, one spouse cannot transfer or mortgage the real documents you should have in place to plan your estate,
but sometimes their estate without the other spouse’s consent. However, this schedule a free consultation today by calling our office
intentions don’t match also means that a creditor of one spouse cannot go after at (561) 694-7827, Anné Desormier-Cartwright, Esq.,
their actions and kids start real estate that is owned as tenants by the entirety (except Elder & Estate Planning Attorneys PA, 480 Maplewood
to struggle. Some kids for a federal tax lien) to satisfy the creditor’s claims. At Drive, Suite 3, Jupiter, FL 33458.
struggle academically a spouse’s death, the surviving spouse will automatically The content of this article is general and should not be
while others have social become the sole owner. This keeps the real estate and relied upon without review of your specific circumstances
struggles. Either way, its value out of the probate proceedings, but as the sole by competent legal counsel. Reliance on the information
these struggles can leave your child feeling frustrated, owner, the surviving spouse will face the issues associated herein is at your own risk, as it expresses no opinion by
developing a negative school attitude, and interfering with owning the real estate individually. the firm on your specific circumstances or legal needs.
with your child’s performance. In A Trust An attorney client relationship is not created through the
First, get to know your child’s teacher(s). This is Another option for real estate ownership is to transfer information provided herein.
especially important if your child has an IEP or 504 it to or have it purchased by a trust. As the trustmaker, you To comply with the U.S. Treasury regulations, we must
Plan because you want the teacher to know how to best can establish rules for the use of the real estate, appoint a inform you that (i) any U.S. federal tax advice contained in
help your child. All parents should consider writing the person (sometimes yourself) to oversee the maintenance this newsletter was not intended or written to be used, and
teacher(s) a short letter explaining your child’s strengths of the real estate while allowing others (sometimes cannot be used, by any person for the purpose of avoiding
and needs. I was a classroom teacher and when I received yourself) to enjoy it. However, it is important to note U.S. federal tax penalties that may be imposed on such
a letter it helped me understand and support the child that the control and benefits can vary depending upon person and (ii) each taxpayer should seek advice from their
faster. I knew if a child was a worrier, had math struggles, what type of trust is being used. If the real estate is in a tax advisor based on the taxpayer’s particular circumstances.
a history of bullying, as well as kids’ strengths.
Second, build your child’s mindset that he or she can
do hard things with effort. Teach your child to have grit,
which is sticking with a task until completion. (Angela Peripheral
Duckworth has a great TED Talk on grit.) Notice the small
things that your child did that took effort. If it took effort Neuropathy?
for your child to pick up pinecones in the yard before it
is mowed, comment on how he stuck with a task that was
boring and took effort. Ask him what he was saying to FREE Consultation
himself as he worked. Did he say, “This sucks” or “I can
do it and I’m helping out.” Hopefully the latter and then
say, “Can you tell yourself that when you have a hard task for Acupuncture
in school?”
Third, create routines and seek proactive support. Kids
perform best when they have a predictable daily routine
that includes being organized. Establish a homework
schedule, have a consistent place for the backpack,
use technology to set getting ready in the morning
reminders. Having routines reduces stress and saves 561-745-1002
time. Finally, when you see your child struggle, contact
a tutor, counselor, or skills coach such as those at Beyond 654 West Indiantown
Booksmart.com. THE PATIENT AND ANY OTHER PERSON RESPONSIBLE FOR PAYMENT HAS THE RIGHT TO Road, Jupiter, FL 33458
REFUSE TO PAY, CANCEL PAYMENT OR BE REIMBURSED FOR PAYMENT FOR ANY OTHER
We can help you help find out why your child struggles. SERVICE, EXAMINATION OR TREATMENT WHICH IS PERFORMED AS A RESULT OF AND
WITHIN 72 HOURS OF RESPONDING TO THE ADVERTISEMENT FOR THE FREE, DISCOUNTED
Call (561) 625-4125 or visit JimForgan.com. OR REDUCED FEE SERVICES, EXAMINATION OR TREATMENT. www.drlaruffa.com