Marital assets after death.
Hi Terry. Do marital assets automatically pass to the surviving spouse after a death or do some have to be specified in a trust? My dad left my sister and I half ownership each of his home. My sister lives there currently. If I pass, does my husband take ownership of my half automatically or do I have to specify that in writing somewhere? Thank you.
Terry Says
In this case, it all depends on how the home is “titled.” Does the title read “joint tenants with right of survivorship” or “Joint tenants in common”? Or did you even bother to change the title after your father died?
If you have rights of survivorship in the title, then the surviving sister gets the entire property. If tenants in common, then your share passes via your will. But without a will, that half of the property that is yours if tenants in common, won’t pass for at least a year, after a complicated probate process.
NOW is the time to have an open discussion with your sister. You may need to create a separate trust for this property, specifying each other’s rights — not only after death, but if one is incapacitated. Your sister is living there, but what if she has dementia and stops paying property taxes and insurance??
Are you better off having your sister buy out your share by getting her own mortgage on the property?
This sounds like a setup for trouble down the road, when the problems won’t be so easy to fix. AND, you and your husband should create your own estate plan now, if you don’t have one.
Watch this video I made on the subject.
