Co-ownership of Real Property Tenancy by the Entirety Joint Tenancy Tenancy in Common

Tenancy by the Entirety Held only by a husband and wife. Husband and wife are regarded as one. Surviving spouse owns the entire estate. Does not require probate. Divorce: tenancy by the entirety no longer exists.

Joint Tenancy 2 or more persons own real property Single estate with multiple ownership. Each tenant owns the entire estate. All joint tenants’ interests in the property are equal. Upon death, ownership does not pass to the heirs or devisees of deceased tenant. Does not require probate.

Tenancy in Common 2 or more persons own real property Each person owns an undivided share. Upon cotenant’s death, share passes to the heirs of the cotenant. No right of survivorship. Probate required.

Insurance Policies Named beneficiaries: primary and contingent Upon death, beneficiary receives the benefit without a need for probate. Insurance company will require: 1) death certificate 2) completed claim form 3) insurance policy If beneficiary(ies) is/are dead, policy must go through the estate.

Gifts May avoid probate: Gifts in Causa Mortis ( Gift in Contemplation of Death) May avoid NJ Transfer Inheritance Taxes May avoid Federal Estate Taxes

Trust May be created by an agreement or a Will. Subject matter is given to a third person (trustee) for the benefit of the beneficiary. Beneficiary is not the sole and absolute owner. The ownership is divided into 2 parts: 1) trustee is the legal owner 2) beneficiary is the beneficial owner

Reasons to Establish a Trust 1) mental/physical incapacitation 2) beneficiary is a minor 3) subject matter 4) save estate and/or income taxes Creator of the trust determines how the trust will be managed. (income & principal) Probate may not be necessary.