Vesting Explanations and Titling Choices
Joint Tenants with Right of Survivorship: Joint tenancy is always equal interest with the RIGHT OF SURVIVORSHIP. Each party has an automatic equal interest in the property, with the right of survivorship passing to the other(s). In the event of the death of one party, the survivor(s) sign a Bill of Sale and present a certified copy of the death certificate.
Husband and Wife as Community Property: usually used by husband and wife in HIGH INCOME/ASSET OR MULTIPLE PROPERTY OWNERSHIP RANGE. There may be certain tax advantages with inheritance taxes, which may be beneficial. Parties taking title this way should have made wills and should have the advice of their attorney/CPA. As between husband and wife only, percentage of interest is assumed to be equal.
Husband and Wife as Community Property with Right of Survivorship: combines BOTH Husband and Wife as Community Property AND Joint Tenants with Right of Survivorship.
Tenants in Common: Equal or unequal division of interest between two or more people. The percentage each person (or each couple) holds MUST BE SET OUT. Each interest is separate – NO RIGHT OF SURVIVORSHIP. On death of co-owner, interest passes by will to his devisees or his heirs. Example: John Buyer, a single man, as to an undivided 2/3 interest, and Joe and Mary Clark, husband and wife, as joint tenants, as to an undivided 1/3 interest, as tenants in common.
Trust: Must have pages (usually 1st and last) of the Trust referring to the name of Trust, Trustees, and date signed by the Trustees, or Abstract of Trust. ALL trustees, trustors and beneficiaries must be U.S. Citizens.
Corporation: Articles of Incorporation REQUIRED, # of Directors that constitute a Quorum:_______. ALL officers, directors and shareholders must be U.S. Citizens; if not, please notify us immediately.
Limited Liability Company: Must have copy of Articles of Organization & Operating Agreement. ALL Members MUST BE US CITIZENS.
General or Limited Partnership: Must have operating agreement and list all General and Limited Partners. All partners MUST BE US CITIZENS.
NOTE: The manner of taking title may have significant legal and tax consequences. Buyers should consider consulting with a professional regarding such consequences. If you should have any questions regarding the vesting, you may wish to contact an attorney.