Estate planning requires careful consideration regarding major assets. For those with homes, ensuring that the appropriate party inherits the property may be a top priority during the estate planning process.
Arranging for a transfer that occurs outside of the probate process is often an ideal solution. Otherwise, testators may need to worry about the possibility of estate taxes or creditor claims impeding the transfer of ownership. A deed executed in advance can be a viable strategy for keeping a residence out of probate court.
Adding a co-owner can be a savvy decision
Some states allow those who own real property to draft transfer-on-death deeds. People draft deeds in advance and leave them for their family members to record after they pass. Connecticut does not recognize transfer-on-death deeds.
However, there is an alternative option available. Property owners can sign simple deeds, such as quitclaim deeds, intended to modify the current vesting for the property. They can add a new co-owner or change how they share ownership with a current co-owner.
By holding title as joint tenants with rights of survivorship, property owners who live at the home can arrange for their interest in the home to automatically transfer to one another should either of them die. This arrangement is a useful strategy for protecting home equity and preventing disputes about ownership of the property.
Creating an estate plan that addresses important assets is critical for those who want to provide for their loved ones and protect their major resources. Deeds can play an important role in the successful transfer of real property after an owner dies.