A comprehensive estate plan allows an individual to effectively pass on their property to their designated heirs upon their death. However, depending on the types of assets the individual owns, and how they owned them, where this property goes could be influenced.
Understanding the different types of assets and ownership in Houston could help you create an estate plan that accurately reflects your final wishes. Whether you are putting together an end-of-life plan or if you are trying to work through your loved one’s estate, a reliable attorney with the Your Legacy Legal Care could help.
What are the Different Types of Ownership in Houston?
When it comes to property, you can either have sole ownership, joint ownership with the right of survivorship, or property ownership. The type of ownership you have over an asset in Houston would determine where that property would go in the event of your passing.
Sole ownership is anything that you own in your name individually that no one else can say is theirs.
Joint Tenancy with the Right of Survivorship
A joint tenancy with the right of survivorship is basically joint ownership, such as a checking account for a married couple. Both parties own the asset(s) and if one of them passes, the survivor has the right to all the assets.
In Texas, because we are a community property state, it is presumed that anything that is sought during the marriage is undivided 50 percent interest between the spouses.
How Do You Value an Asset?
Determining an asset’s value depends on the type of property in question. For instance, real estate can be valued by an appraisal. However, assets can also be valued based on fair market value or what somebody is willing to pay for it.
Valuing property is important so beneficiaries can get a total determination of the assets they inherit and so the assets are distributed properly. It also helps with inventory and sales if the beneficiary wishes to sell the property.
Impact of Market Value
The market value predominantly refers to real estate in most cases. Market value can be determined by the value that the appraisal district gives it, or by a market analysis by a realtor.
Notably, a person’s date of death does not necessarily influence the market value, but it does give them a basis. For instance, the date of death value is the basis of the value of the decedent’s estate for every asset that they own in Houston. That basis then transfers to the beneficiary.
Discuss Assets and Ownerships with a Houston Attorney
If you are confused about the different types of assets and ownerships in Houston, do not worry. Our experienced team is well-versed in these concepts with the right knowledge to help you. Whether you are putting together your own estate plan or administering your loved one’s, working with a well-practiced lawyer will be the right choice. Call Your Legacy Legal Care today to learn more.