Portland, Oregon: Why Knowing How to Take Title to Real Property Matters
If you're in the process of buying or investing in real estate, you've probably come across the term "taking title." It may sound technical, but understanding how to take title to real property is essential for protecting your interests and ensuring a smooth transfer of ownership. In this blog post, we'll explore why knowing how to take title matters and discuss the different options available to you. Let's dive in!
What does "Taking Title" mean? Taking title refers to the legal way in which you hold ownership of a property. It determines how the property is legally classified and can have significant implications for matters such as asset protection, inheritance, and tax considerations.
Individual Ownership: The most straightforward way to take title is as an individual owner. This means you're the sole owner of the property, and your ownership interest is not shared with anyone else. While it offers simplicity and control, individual ownership may expose your property to personal liabilities.
Joint Tenancy: Joint tenancy is a common option when multiple individuals purchase property together. Each co-owner has an equal interest in the property, and if one owner passes away, their share automatically transfers to the surviving owners. This method avoids probate but requires careful consideration as it may impact individual control and inheritance plans.
Tenancy in Common: Tenancy in common allows multiple owners to hold unequal ownership interests in a property. Each owner can sell or transfer their share independently, and upon the owner's passing, their interest is transferred according to their estate plan. This option offers flexibility but requires clear agreements among co-owners.
Trust Ownership: Holding property in a trust can provide significant benefits. A living trust, for example, allows you to transfer your assets into a trust during your lifetime, maintaining control and avoiding probate. With trust ownership, you can also include provisions for managing the property in case of incapacity or distribute it to beneficiaries according to your wishes.
Business Entities: For real estate investors and business owners, holding property under a business entity such as a limited liability company (LLC) or corporation can offer liability protection and tax advantages. It separates personal and business assets and limits personal liability for debts or legal issues related to the property.
đ Knowing how to take title to real property matters because it determines how you legally own and protect your investment. Whether you choose individual ownership, joint tenancy, tenancy in common, trust ownership, or a business entity, each option has its benefits and considerations. Consulting with an experienced estate planning attorney can help you understand the implications of each choice and ensure your property is titled in a way that aligns with your goals.
đ. Remember, taking title is not a decision to be taken lightly. It's crucial to seek professional guidance to ensure your interests are protected and your estate plan is in order. By understanding the different methods of taking title, you can make informed decisions and have peace of mind as you navigate the exciting world of real estate ownership.
đ If you have any questions or need assistance with your estate planning needs, feel free to reach out to our experienced team of estate planning attorneys. We're here to help you secure your future and protect your real estate investments.
Simply contact our office at (503) 235-5150 or fill out the Contact form to schedule an appointment.
If you want to get started on your estate plan, read about our estate planning services and schedule an appointment.
To your family's health + happiness.
~Candice N. Aiston