Re: What is the proper way to record a home to avoid problems related to death of one spouse?

George Kooper <[EMAIL PROTECTED]> wrote:

> I and my wife had an appointment with a lawyer couple years ago,
> and he has advised us to record our home different way tha it is
> now, so that when one of us dies, another one will not have to
> pay extra taxes or something?

This is actually fairly complicated and it depends completely on the 
facts involved and the laws of the state you are in.

In general the way you hold title to property can do only one thing: 
determine whether half of that property needs to go through probate 
when one spouse dies.  That happens if the title reads, joint 
tenants.

If you live in a community property state, being in joint tenancy 
will avoid probate but could actually increase income taxes for the 
survivor.  Don't mix these things up.

If the total assets you and your wife have together, including any 
money in a retirement plan and the death benefit of any life 
insurance, is less than $1 million, the chances are you won't have a 
problem with estate tax.  Based on your comments I gather you are 
probably not in a community property state, so income tax won't 
likely be an issue in this regard.

So yes, titling the property as joint tenants will avoid probate 
when one of you dies.  But it won't avoid probate on the second 
death.  So you might consider a trust instead.

What you really need to do is to find a qualified estate planning 
lawyer who can help you analyze your situation and figure out 
exaclty what you need.

Stu