Welcome to another episode of Close to Home with Nicole Sullivan. In this session, we delve into a crucial topic for homeowners: the different types of tenancy in property ownership. Joining me is Matt Skye, a seasoned attorney with deep insights into real estate and estate planning in Mississippi.
Understanding the distinctions between joint and tenancy in common is essential when it comes to property ownership. In Mississippi, tenancy in common is the default unless otherwise specified. For instance, if a husband and wife purchase a property without stating otherwise, they will typically hold the property as tenants in common. If one partner passes away, their share must go through probate and be distributed according to their will or the state’s intestate succession laws.
In contrast, joint tenancy includes a right of survivorship. If the same husband and wife own the property as joint tenants, when one spouse dies, the surviving spouse automatically inherits the entire property without the need for probate. This setup particularly benefits married couples looking to simplify their estate transitions.
The advantages of joint tenancy are clear, especially for married couples. It provides a seamless property transfer upon one spouse’s death, avoiding the often lengthy and costly probate process. However, joint tenancy might not suit everyone. For example, if you wish to pass your share of the property to your heirs rather than your spouse, tenancy in common might be more appropriate. This option allows for varying percentages and facilitates passing ownership down through lineage.
A common question arises about how these tenancy types affect property distribution, especially when there is no will. In Mississippi, if an individual dies intestate (without a will), their property will be distributed according to state laws, typically favoring spouses and children. However, even with a will, it’s a misconception that probate can be avoided entirely. Whether a person dies with or without a will, probate is often required unless specific measures have been taken regarding the property title.
Matt emphasized that in Mississippi, the title of the property is paramount. A deed indicating ownership will take precedence over a will. Therefore, homeowners should carefully consider how they title their property with their estate planning goals.
Even if a homeowner sets up their property to avoid probate, having a will is an essential safety net. A will can outline the distribution of forgotten assets, such as inherited properties or other valuables. Additionally, a will can establish guardianship and appoint trustees for those with minor children, ensuring that their children’s future is secure.
One of the significant misconceptions we discussed is the belief that simply having a will guarantees that assets will automatically transfer to heirs without probate. This is not the case. A will must go through probate to ensure its validity and to confirm that the deceased was of sound mind when it was created.
Matt’s advice to homeowners is clear: consulting with an attorney to navigate these complexities is crucial regardless of the tenancy type chosen. He emphasizes the importance of being a legal advisor and a supportive friend in these discussions.
Understanding the nuances of tenancy types and the importance of wills in property ownership can significantly impact how you plan for the future. Whether you’re a new homeowner or looking to update your estate plan, consider these insights to ensure your wishes are honored and your loved ones are protected.