Deeds and Titles for Property Ownership
When it comes to homeownership, same-sex couples have to be certain that their deed or title, which establishes ownership of the property, will ensure the security of both in the event of a breakup or death. This is especially important for same-sex couples because the law will not recognize an unmarried relationship the way it would a married relationship in the event of property disputes, which could cause one of you to end up in a costly and time-consuming legal battle.
What follows are three basic options for establishing title:
Joint Tenancy with Right of Survivorship
This is the most popular option same-sex and other unmarried couples choose and the one many advisers recommend. Including this phrase in your title establishes that:
- You and your partner share ownership and use of the property, and
- If one of you dies, the other will automatically assume sole ownership
Tip: Remember that when you make a plan that includes leaving your home to anyone else, there are tax implications that you and your financial planner should take into account.
Tenants in Common
This option offers certain tax advantages and allows owners of a home to leave inheritance of their respective shares to whomever they choose, providing a will clearly specifies their wishes.
For example, some couples who have children from a prior relationship choose to title their property this way so it can automatically pass to their children upon their death. Others who place their home in a living trust may choose this option as well.
Sole Ownership
Some couples choose to have the title held in one person’s name only, which means that only one person actually owns the home. One reason some couples are tempted to do this is for the promise of a tax advantage if the couple has widely varying incomes.
But establishing a title this way may present the unnamed party with very serious risks in the event of a breakup or death. For example, if your partner’s name is the only one listed on the title and he or she dies without a will, you will have no right to claim ownership of the home – unless, perhaps, you engage in a lengthy and expensive court battle.
Similarly, if you and your partner unexpectedly break up and, in a time of disappointment or anger, your partner decides to sell the home, he or she can pocket the assets and you can find yourself without a home or any of the money or work you may have invested in it.
Other Estate Planning Documents
There are many other legal documents, in addition to a good title,that GLBT couples should secure to protect their relationships, home and other assets. For more information, see Estate Planning.