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While no substitute for a will, one way to ensure that jointly owned real estate passes automatically to the surviving partner is to designate your wishes on the deed. The following terms are the most commonly used, but the language varies from state to state and must conform exactly to state law. When purchasing real estate, ask your lawyer or other representative for the exact language required.
Joint Tenants v. Tenants in Common
If you and your partner are named in the deed as joint tenants with right of survivorship, the property will automatically pass to the surviving partner. While holding property as joint tenants with right of survivorship will keep the property from probate, it will not allow you to avoid inheritance taxes that may be owed.
If you own property as tenants in common, you each own a 50% interest in the property. In the event of death, the surviving tenant would continue to own his/her 50% share, while the deceased's interest in the property would be distributed to his/her heirs as dictated by law. If you don't state on the deed that you wish to be joint tenants with right of survivorship, the law automatically treats you as tenants in common.
You can always change how you are named on the deed. However, you will need to follow the required steps for making changes to a deed in your state.
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