Tenancy options for a shared property

On Behalf of | Jun 13, 2016 | Probate And Estate Administration

There are various situations in which Nevada residents might buy a property together. The type of tenancy recorded in purchase documents could affect how the property is handled in case of a death or in another situation involving one of the individuals exiting the situation. One of the most common solutions is joint tenancy with rights of survivorship, which allows the interest of a deceased owner to be transferred to the other owners. This is often an excellent option for married parties as their marital home would not need to go through probate in the event of one party’s death.

Another option for handling a shared property is the designation of tenants in common. In this situation, interest in a property could vary from one co-owner to another. One party might own a greater share of the property based on the portion that was contributed to the purchase. In this situation, the share belonging to one party does not necessarily pass to the others in the event of a death. An individual might leave an interest in a home or other property to an heir in a will or trust.

In considering a property purchase involving someone other than one’s spouse, it may be important to understand the long-term implications in case of the death of any of the parties involved. It may also be helpful to discuss goals in the event of one of the joint owners deciding that they no longer want to be involved with the property in question.

People might discuss a potential joint property purchase with their estate planning attorney to determine whether a joint tenancy or tenant in common solution is appropriate. Further, it may be wise to have the attorney’s help in formulating any agreements or other documentation related to the property so that personal interests are protected.