What's a Tenant in Common? Some kind of shared renter?

How should I hold my property?

When you buy a property in your own name (the only way I've found to get a loan) then the next step is to have the title (or deed) transferred from your name into the name of an entity (usually a Limited Liability Company). Of course when you do transfer the property, one of the questions that comes up is HOW to hold it! You have several choices, and they all result in different consequences. So, what are your choices?

• Tenants in Common (TIC)
• Joint Tenants with Right of Survivorship
• Community Property Estate
• Community Property with Right of Survivorship

Each of these terms has a specific implication. You need to decide which one fits your purpose (and is allowed by state law).

Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, as well as Puerto Rico use the community property system. These jurisdictions hold that each spouse shares equally the income earned and property acquired during a marriage.

In the other states, spouses generally share property under one of the following three forms of co-ownership:

1. Joint tenancy is a form of ownership that exists when two or more people own property that includes a right of survivorship. Each person has the right to possess the property. If one partner dies, the survivor becomes the sole owner. Any two people--not just spouses--may own property as joint tenants. A creditor may claim the debtors interest in joint tenancy property.
   
2. Tenancy by the entirety allowed only in some states, tenancy by the entirety is a type of co-ownership of property by a husband and wife. Like joint tenancy, it includes a right of survivorship. But a creditor of one spouse may not attach (seize) the property. Each party usually must consent to the sale of the property. Divorce may result in a division of the property.
   
3. Tenancy in common is a form of co-ownership gives each person control over his or her share of the property, and the shares need not be equal. The law does not limit tenancy in common to spouses. A tenancy in common has no right of survivorship; when one spouse dies, his or her share passes to the heirs, either by will or state laws.

Tenancy rules vary from one state to another. Some tenancies are complex and must be created in a precise manner; otherwise the courts may not enforce them.

Confused yet? When in doubt, talk to your estate and legal experts on your team.

As for me, I see someone opening a can of ... Tuna!

Got to run.

Smokey