Buying Property in 2025? Make Sure It’s Titled Correctly

Buying a home or investment property is exciting, but how you title it is just as important as the purchase itself. Property titling affects ownership rights, how the property transfers after your passing, and potential tax and legal implications. Without proper planning, your loved ones may face unnecessary delays, legal complications, and even probate costs.

Why Property Titling Matters in Estate Planning

How your property is titled determines the following:

• Who legally owns the property
• How ownership transfers in case of incapacity or death
• Whether the property goes through probate or transfers smoothly
• Tax implications for your heirs
• Protection against lawsuits, creditors, or divorce

Making the correct choice now protects your investment and aligns with your long-term financial and estate planning goals.

Common Ways to Title Property and Their Impact on Estate Planning

Sole Ownership

• One individual owns the property.
• Pros: Full control over the property.
• Cons: If the owner passes away, the property must go through probate before being transferred to heirs.

Joint Tenancy with Right of Survivorship (JTWROS)

• Two or more owners hold equal shares, and ownership automatically transfers to the surviving owner(s) upon death.
• Pros: Avoids probate and provides seamless ownership transfer.
• Cons: All owners have equal rights, and property cannot be passed to heirs outside the joint owners.

Tenancy in Common

• Multiple owners hold a percentage of the property, which can be transferred to their heirs instead of automatically passing to co-owners.
• Pros: Each owner can designate heirs in their estate plan.
• Cons: Property interest must go through probate unless placed in a trust.

Tenancy by the Entirety (Only for Married Couples)

• Offers additional asset protection by preventing creditors from forcing the sale of the property to collect debts.
• Pros: Protects property from individual lawsuits or debts.
• Cons: Only available in certain states and only between spouses.

Revocable Living Trust

• Titles the property in the name of a trust, allowing for a smooth transition after death while avoiding probate.
• Pros: Avoids probate, controls how the property is managed after death, and allows for tax planning strategies.
• Cons: Requires proper setup and management but offers the most flexibility in estate planning.

What to Do Before Closing on a Property

• Decide on Your Ownership Structure – Work with an estate planning attorney to determine the best option for your needs.
• Inform the Title Company – Make sure they have the correct title information before closing. Changing it later can be costly and complicated.
• Align With Your Estate Plan – If you already have a trust, ensure your property is titled properly to benefit from estate planning strategies.
• Review with an Attorney – Estate planning and real estate attorneys can help you avoid legal pitfalls and ensure long-term asset protection.

How Rutkowski Law Firm Can Help

Titling your property correctly is one of the most crucial estate planning decisions you can make. At Rutkowski Law Firm, we help homeowners and investors ensure their property ownership structure aligns with their financial goals and estate planning needs.  

If you already have an estate plan, there’s no need to duplicate efforts. Simply work with your title company to update your deed according to the terms of your trust. However, if you need guidance on ensuring your property is properly titled within your estate plan, we’re happy to help.  

Contact us today to schedule a consultation and ensure your property is titled correctly from the start.