Options For Title Ownership In The State Of Florida

When it comes to titling your Florida real estate — whether it’s your primary residence, a vacation home or investment property — you do have options. And the option you choose can make a difference in how easy it will be for you to pass that property along to your heirs.

In Florida, these are some of the options for titling real estate:

Sole Ownership

Having your name alone on the property title could be the best option for you if you are single, have recently gotten a divorce or are married to someone who works in a profession that is at a high risk for litigation or who has a bad financial history. By having just your name on the title, you can protect the property from the other person’s business liabilities or creditors.

Joint Tenancy

When two people own property together with rights of survivorship, this is known as a joint tenancy. A joint tenancy with rights of survivorship gives both owners equal interests in the property. The advantage of joint tenancy is that when the first property owner dies, the property then passes directly to the second owner, who establishes sole ownership by recording the death certificate of the deceased owner, therefore avoiding probate. If the co-owners are married and both spouses are on the title, this is known as a tenancy by the entirety.

Tenancy In Common

Tenancy in common is used when two or more people own property together and each owner holds an individual, undivided interest in the property. Each property owner has the right to lease, sell or pass on his or her interest in the property to heirs.

Real estate property in Florida can also be titled in the name of a separate legal entity, including a partnership, limited liability company (LLC) or corporation. In addition, property can be titled in the name of a revocable trust or Florida land trust, and beneficiaries named for that trust.

Use Caution When Transferring Title

It is not unusual for older property owners to transfer title of their residence to a child or children in an attempt to avoid taxes, probate or claims against the property for long-term care costs. Unfortunately, this strategy can have potentially disastrous consequences and is a poor way to achieve estate planning goals.

If you transfer title of your property to a child with credit or other problems, you could put your home at risk from creditors or it could become a pawn in a divorce dispute.

To avoid making a mistake when taking or transferring title your property, let us connect you with a qualified real estate attorney.