Wills and trusts are documents used in estate planning, and they help an individual determine what will happen to their assets, including real estate. If you have a property that you want to incorporate into your estate plan, use this guide to learn about how an owner’s passing affects different types of property ownership.

What Happens to a Sole Ownership Property?

This type of ownership refers to property that’s free of any outside claim and isn’t shared with another person. If the owner passes without including the property in their will and trust, it’ll be assessed and sold to cover any tax liens and outstanding mortgage payments. If there’s money left over, it’ll be distributed to the deceased’s heirs.

What Happens to a Joint Ownership Property?

Property can be jointly owned, like when a couple purchases a home together. The death of one owner grants the right of survivorship to the other. The ownership change happens automatically, and the survivor becomes the sole owner.

What Happens to a Co-Owned Property?

In this type of real estate agreement, the owners aren’t required to have equal ownership of the property. For example, one person can have 80% ownership while the other has 20%. A co-owner can use their estate plan to leave their share of ownership to a beneficiary instead of the other co-owners. The beneficiary can choose to sell their share without the consent of the other co-owners.

If you own real estate and want to include the property in your will and trust, contact the team at the Law Office of Dawn N. Murata LLLC, in Lihue, Hawaii. These professionals will walk you through your options and help you create a detailed estate plan to account for all your assets. Attorney Murata has over 20 years of industry experience, and she and her team will provide you with tailored legal counsel. To request a consultation, send a message online, or call (808) 245-4572.