Understanding basic property law means understanding:

• The four (4) general ways of owning property,
• How ownership dictates how property is inherited, and
• Who is in control of the property if you become incapacitated.

1. Joint Tenancy with Right of Survivorship –
• Owned equally by more than one person.
• Upon the death of a joint tenant, the deceased joint tenant’s interest passes equally to the surviving joint tenants.
• Upon the death of the second from last (i.e. one survivor left), the property becomes owned individually without a beneficiary designation.
• No probate until last tenant dies.
• Creditor of any joint tenant may seize to pay judgment.
• Upon a joint tenant’s incapacitation, Guardianship required unless he or she has a Durable Power of Attorney ("DPOA").
• Fails to take advantage of estate tax laws.
2. Individually with a Beneficiary Designation –
• Life Insurance Policy
• Individual Retirement Account
• Retirement or Pension Benefit (e.g. 401(k) and 403(b) benefit)
• Annuities
• POD ("Payable on Death") bank accounts
• TOD ("Transferable on Death") securities account
• Real Estate (Land) and vehicles can not be owned this way
• Upon death of owner, property passes directly to the named beneficiary without probate.
• Upon incapacitation, Guardianship required unless owner has a DPOA.
3. Individually without a Beneficiary Designation-
• Subject to probate administration.
• Joint tenancy property, particularly real estate, automatically becomes this form of ownership.
• Upon death, probate estate passes pursuant to the deceased owner’s Last Will and Testament or applicable State Law.
• Upon incapacitation, Guardianship required unless owner has a DPOA.
4. Revocable Trust-
• Not subject to probate.
• Upon Grantor’s (owner’s) death, property passes pursuant to Grantor’s Revocable Trust Agreement.
• Upon incapacitation, No Guardianship or DPOA needed because Trustee has title to the property.

    Your "estate" includes all four (4) methods of ownership, not just your probate estate.

    The term "estate" is confusing because it is often misused. For example, there is a "probate estate", "trust estate", "gross estate" and just simply "estate". The first is used to describe what goes through probate, the second term describes what is subject to a trust agreement, the next "gross estate" is a tax term, and the last term is used to describe all of your property.