UNDERSTANDING TYPES OF PROPERTY OWNERSHIP IN MISSOURI
In my last article, I discussed the different types of deeds which can convey real property. This article focuses on the different types of property ownership in Missouri.
Property can be owned solely by one person or organization, or ownership can be shared by more than one party. Sole ownership is obviously the simplest, most straightforward type of possession. The sole owner has the rights to the property within limitations of the laws (such as vehicle registration or zoning), and there is rarely any question raised when these rights are exercised.
One form of co-ownership is tenancy in common where each party or tenant has separate and distinct property interests. Each tenant in common has a fractional interest in the property. The amount of the fractional interest is the percentage of the total value of the property that the individual paid, or received as an inheritance or gift, when the tenancy was created. For example, if property was purchased for $50,000 and one of two tenants in common paid $20,000 in cash and mortgage payments, then his or her fractional interest is 40 percent. Each tenant in common is entitled to the income that his or her fraction of the property generates. Tenants in common owners may dispose of their interest as they wish. When one tenant dies, the interest of a tenant in common passes according to their will (or the law of intestate succession if there is no will). The property does not automatically revert to the survivors.
Another form of co-ownership is joint tenancy with right of survivorship. This is created by a deed if the property is land. The joint tenants own the same interests arising from the same conveyance of title such that each has an undivided or undesignated interest in the jointly owned property. Each has a right to use the property and a right to any income generated by the property as well. When one joint tenant dies, the survivor automatically acquires full ownership of the property. If more than two people are joint tenants with right of survivorship, the remaining individuals share the property; no third party will take the decedent’s share.
This ownership arrangement acts like a will substitute because the property will automatically belong to the survivors, avoiding probate. A joint tenancy that can be used only by a husband and wife and only with real estate is a tenancy by the entirety with right of survivorship. Like other joint tenancy property, upon death of the first spouse, property in tenancy by the entirety is passed on to the surviving spouse. Tenancy by the entirety property cannot be severed without consent of both the husband and wife. Divorce severs the tenancy, however.
Missouri Estate Planning FAQs
Estate planning can seem like a big task, but it’s really about making informed choices to protect your future and the ones you care about. Our Missouri estate planning lawyer is here to answer some common questions about estate planning, covering the basics and offering clarity on what you need to consider. Our founder, Charles Moore, has been practicing law since 2005, and our firm has been serving the Missouri community for over a decade. We have been recognized for our exceptional client service, and we will work hard to help you create an estate plan that reflects your specific needs and interests.
What Is The Difference Between A Will And An Estate Plan?
A will is a document that details how you want your assets distributed after you pass, along with guardianship instructions for minor children. An estate plan, on the other hand, is broader, covering more than just asset distribution. An estate plan can include a will but also involves other documents like powers of attorney, health care directives, and trusts to guide important decisions in the future. This more comprehensive approach helps protect your interests during your lifetime and offers a structured plan for your loved ones after you’re gone. By discussing your situation with our legal team, you can determine how a full estate plan can help secure your future and the future of your family, friends, and loved ones.
What Are The Most Important Estate Planning Documents?
Several documents form the foundation of a solid estate plan. Besides a will, many people choose to include a power of attorney, which authorizes someone to make financial decisions on their behalf if they’re unable to. A health care directive, sometimes called a living will, helps guide medical decisions in situations where you can’t voice your preferences. Trusts are also beneficial for controlling how assets are distributed and can help streamline the estate process. These documents work together to create a secure plan for the future and prevent confusion or disputes among family members. Our Missouri estate planning lawyer can help you determine the necessary and beneficial elements of your specific estate plan.
What Are The Advantages Of Having An Estate Plan In Missouri?
Creating an estate plan in Missouri offers peace of mind, knowing your assets will be distributed according to your wishes. Estate plans help reduce probate delays, streamline the distribution of property, and provide tax-saving benefits. They’re also key to keeping family matters private by avoiding the public probate process. For Missouri residents, it’s especially valuable to have specific documents in place to designate a healthcare proxy and financial representative, as this helps avoid unnecessary legal proceedings.
What Is The First Step To Take When Establishing An Estate Plan In Missouri?
The first step in creating an estate plan is to take an inventory of your assets, including property, bank accounts, investments, and personal belongings. This helps in determining what you’ll need to cover in your plan. Once you’ve outlined your assets, think about your priorities and who you want to manage your affairs if you’re unable. Many find it helpful to discuss these goals with an estate planning lawyer, as they can guide you through the specific steps needed to meet Missouri’s requirements. A clear idea of your priorities helps streamline the process and leads to a more thorough plan. Our Missouri estate planning attorney can help you assess your situation and understand the best path forward that aligns with your needs, interests, and goals.
How Do I Choose My Estate Planning Lawyer?
Choosing the right estate planning lawyer is an important part of building a secure plan. Look for a lawyer who is well-versed in Missouri estate planning law and procedure and who makes you feel comfortable discussing personal details. Reading reviews, asking for referrals, and scheduling a consultation can help you gauge whether a lawyer is the right fit for your needs. An ideal lawyer should understand your priorities and explain your options in a clear, approachable way.
Contact Our Missouri Estate Planning Lawyer Today
Estate planning is an important step that brings lasting benefits, both for you and your loved ones. If you’re ready to take control of your future and want to discuss your options, we invite you to reach out to our team at Legacy Law Center today and allow us to partner with you on this important journey towards securing your future.
