Understanding Property Titles: A Guide for Caregivers
How property is titled affects who can make decisions. Learn about different types of ownership and their implications.
Understanding how your parent's property is titled is important for caregiving and estate planning.
Types of Property Ownership
Sole Ownership
- One person owns the entire property
- Full control over the property
- Passes through probate at death
- May need to be addressed in will or trust
Joint Tenancy with Right of Survivorship
- Two or more owners with equal shares
- When one dies, property goes to survivors automatically
- Avoids probate
- All owners must agree to sell
Tenants in Common
- Multiple owners with individual shares
- Shares can be unequal
- Each share passes through owner's estate
- Doesn't automatically go to other owners
Community Property (Some States)
- Married couples own property equally
- Applies in 9 states
- Has specific rules for inheritance
Finding Title Information
- Review the deed
- Check with county recorder's office
- Look at title insurance policy
- Contact an attorney if unclear
Changing Property Title
Think carefully before changing titles:
- Adding children may affect Medicaid eligibility
- Could trigger gift taxes
- May lose stepped-up basis for capital gains
- Consult an elder law attorney first
Life Estate Deeds
A compromise option:
- Parent keeps right to live there for life
- Property transfers to designated heir at death
- Avoids probate
- Has Medicaid implications—get advice