Changing the Tenancy to a Deed after Marriage
Many couples buy a house before they get married. They often ask if there are any benefits to changing the tenancy to a deed after marriage. While it may seem tedious to have to change a deed, the process is not as complicated as it sounds and is worth it. Here are some common reasons for changing the tenancy:
Protecting the surviving spouse:
Many couples consider changing the tenancy from “Tenants in Common” to “Tenants by the Entirety with Right of Survivorship” to ensure that if one spouse passes away, the surviving spouse automatically inherits the property without going through probate.
Simplifying inheritance:
Changing the tenancy to tenancy by the entirety can simplify the transfer of property upon the death of a spouse, making it easier for the surviving spouse to inherit the property.
Asset protection:
For some couples, changing the tenancy to tenancy by the entirety can provide protection against creditors or legal judgments against one spouse while still allowing both spouses to live in the property.
Estate planning:
Adjusting the tenancy may be part of a broader estate planning strategy to ensure that the property passes to the intended heirs or beneficiaries according to the couple’s wishes.
Tax planning:
Changing the tenancy may have tax implications. For example, it could affect the capital gains tax treatment when selling the property, so couples may choose to make changes that minimize tax liability.
It’s essential to consult with a qualified attorney when making changes to a real property deed, as the specific laws and regulations governing tenancy and property ownership can vary by jurisdiction. It is important for the deed to be prepared properly to hold up to any future scrutiny. Also, equally important is using a company experienced in property recording the deed. Gentile Property Law Office, LLC can assist with all of deed transfer needs. Please contact joseph@gentileproplaw.com for assistance.
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