Types of Real Estate Ownership

Each type of property ownership has its own benefits and drawbacks, and issues such as tax implications, liability, and other issues must be taken into account. A Pennsylvania real estate lawyer can help you understand how each type of real estate ownership works and help you make informed decisions about what may be most suitable for your specific circumstances.

Sole Ownership

As its name suggests, sole ownership means that a piece of real estate belongs to a single individual. When someone is the sole owner of a property, they get to make all of the decisions about what to do with it and when to sell without any input or permission from tenants or co-owners.

Although sole ownership can simplify things, it can become complicated when someone passes away and the title to the property needs to be transferred. Even if heirs to the property are designated in a Will, it may have to go through probate, which can be costly and time-consuming.

Putting property in a irrevocable trust can help avoid probate, but it’s important to have a estate attorney help you set up the trust to avoid pitfalls down the road.

Joint Tenancy

When two or more owners own shares of a property, it is considered a joint tenancy. Each person owns a percentage and is entitled to income, use, and rights to the property, including mortgage and tax benefits.

One of the key elements of joint tenancy is the right of survivorship. This means that if one or more of the owners pass away, ownership automatically passes to any surviving owners. Rights of survivorship enable ownership to be transferred easily, without having to deal with probate.

When entering into a joint tenancy agreement, the deed or property conveyance must specifically state that rights of survivorship have been created. Finding the best contract lawyers who are well-versed in handling real estate transactions can help to ensure your agreement protects the rights of everyone involved.

Tenancy in Common

Although this type of ownership is similar to joint tenancy and is common in commercial real estate, it does not include rights of survivorship. Tenancy in common can be split into different percentages among the tenants and does not provide equal use, rights, or income.

Tenancy by the Entirety

With tenancy by the entirety, each spouse in a marriage owns an equal share of a home or commercial real estate asset.  The type of ownership offers rights of survivorship, and the title is automatically transferred to the surviving spouse if the other dies. In cases involving divorce, typically both spouses become tenants in common and continue to own an equal share.

Other Types of Commercial Real Estate Ownership

Limited Liability Company (LLC)

Real estate can also be owned by a Limited Liability Company (LLC) or corporation. An LLC protects owners from personal liability and enables the LLC’s members to pay the business taxes through their personal tax returns.

Corporation

An owning corporation is a separate legal entity that owns a property. The corporation can be sued and property can be acquired and sold by creditors. Before deciding to purchase a property as an LLC or corporation, it is vital to consult experienced business liability lawyers who can advise you on which option will best suit your needs and protect your interests.

Do you need help with a real estate transaction, title, or deed? Our lawyers for real estate can help.

This blog was originally posted at https://carosella.com/blog/types-of-real-estate-ownership/

Charitable Giving and Estate Planning: 4 Things You Need to Know

There are many different reasons people give to charities, both during their lives and after they have passed on. Whether you’re considering charitable giving as part of your estate plan to support a cause you care about or to honor a loved one, it is vital to work with local lawyers for wills who can help you determine the most effective way to give.

Donate To Charity in Your Will or Revocable Trust

Donating to a charity in a Will or Trust is a simple way to reduce the amount of your taxable estate. Your Will specifies how you want your assets to be distributed after your death. In addition to outlining what individual beneficiaries will receive, you can use your Will to designate a charitable bequest to the nonprofit organizations of your choice.

You can also add assets to a revocable Living Trust while you are still alive and name the charity as the beneficiary. Using a trust can help certain assets avoid probate, and make things a lot easier for your loved ones at a difficult time. Having experienced estate planning lawyers’ or probate attorneys‘ assistance can ensure the trust is set up correctly.

Give a Charitable Rollover from a Retirement Account

You can also name a charity as a beneficiary of an IRA, 401(k), 403(b), or pension. If you have an IRA, you can make yearly tax-free charitable donations of up to $100,000 beginning at age 72 ½. Doing this while you’re still alive means you will not pay income tax on the money you donate and it will count toward any required minimum distributions (RMD).

If you plan on donating this money after your death and do not need it for living expenses, it can be an effective way to reduce the amount of income taxes you pay on your IRA distributions. Before you decide to follow this path you should talk to your accountant and estate planning attorney to find out if it is a beneficial option for you.

Gift Appreciated Stock

Another way to give a significant gift to charity and reap tax benefits is to donate appreciated stock. When you bequeath appreciated stock that has been held for more than one year, it qualifies as a long-term capital gain and you can avoid paying capital gains tax on these holdings.

Other Ways To Give as Part of Your Estate Plan

Some other methods to donate to charity as part of your estate plan include establishing your own charitable foundation, creating a charitable remainder trust, donating real estate or other property, and naming one or more charities as beneficiaries on life insurance policies. It is important to understand the financial and tax implications of any approach you may take to charitable giving. An experienced estate planning attorney can do a comprehensive evaluation of your assets and advise you of your options.

Are you ready to learn more about charitable giving and estate planning? Our full-service law firm in West Chester, PA can help.

This blog was originally posted at https://carosella.com/blog/charitable-giving-and-estate-planning-4-things-you-need-to-know/

What Your Medical Power of Attorney Agent Should Know

A medical power of attorney is a vital part of any estate plan, and is something you want to already have in place in the event you cannot make health care decisions for yourself.  An estate law attorney can help to ensure your medical power of attorney addresses all of your wishes and some important issues that can arise if you become ill or incapacitated.

What is a Medical Power of Attorney?

Also known as power of attorney for health care, a medical POA enables you to designate an agent who can make medical decisions on your behalf if you become unable to do so. You are never too young to have a power of attorney in place – unexpected accidents and illnesses can happen to anyone, and a medical power of attorney only goes into effect if you are unable to communicate your wishes. Most states do not permit any of your health care providers to be named as a POA agent, but you can choose any other trusted adult you wish.

Who Should You Choose?

Before choosing someone as your agent, it is important to discuss your wishes for medical care and end-of-life decisions. It is vital that this person is someone you trust who also respects your values and beliefs. Providing specific information about your health care needs and wishes can help make these decisions easier for your agent and take the burden off your loved ones.

Information Your Agent Needs to Know

A list of health care providers – Give your POA agent the names, phone numbers, and addresses of your primary care physician and any specialists you prefer to treat you. If there are any doctors or health providers you want to avoid, make sure to furnish a list of those as well.

Medical conditions – Inform your POA agent of chronic or current medical conditions you may have. That way, they will be well aware of any impact these conditions could have on your care.

Medical history – If you have had surgeries or treatment for serious illnesses like cancer, let your POA agent know and provide the dates that they occurred.

Medications and allergies – It is also a good idea to provide them with a list of all medications you are currently taking, and any allergies you have, including food allergies. If there are certain medications you wish to refuse, provide a list of those, too.

Beliefs and Values

It is essential to communicate your religious or spiritual beliefs and values to your POA agent. They may affect your choices about the type and extent of medical care you’d like to receive, whether you want a religious figure such as a pastor to be part of your medical team, and if there are any religious customs you would like to observe.

Treatment and End of Life Decisions

There are also some important questions you want to ask yourself about medical care and end-of-life decisions. Do you want life-sustaining measures such as CPR, a ventilator, or a feeding tube. Pain medications to keep you comfortable? In which circumstances would you want to stop these measures if you are ill or injured? Are these details clearly outlined in your advance directive?

Giving thoughtful consideration to these matters, being specific about your wishes, and seeking the counsel of a wills and estate attorney can help to ensure your medical POA agent understands what you want and your health and well-being are protected.

If you need assistance with your estate plan or drafting a medical power of attorney, our team of estate planning lawyers and probate attorneys can help.

This blog was originally posted at https://carosella.com/blog/what-your-medical-power-of-attorney-agent-should-know/