Joint Tenancy

Tenancy in Common

A form of property ownership in which two or more people each own a distinct share of an asset that does not have to be equal and does not include a right of survivorship. When a tenant in common dies, their share passes through their will or, if there is no will, through intestate succession rather than automatically transferring to the other owners. This type of ownership is often preferred when co-owners want to pass their share to their own heirs rather than the other co-owners.

Community Property

A form of marital property ownership recognized in certain states where most assets and debts acquired during the marriage are considered equally owned by both spouses, regardless of who earned the income or whose name is on the title. In community property states, each spouse automatically owns a 50% interest in marital property. This has significant implications for estate planning, divorce, and taxes, particularly regarding the stepped-up cost basis at death.

Probate

The legal process through which a deceased person's will is validated by a court, their debts are settled, and their remaining assets are distributed to beneficiaries. Probate can be time-consuming and costly, often taking months or even years to complete depending on the complexity of the estate and state laws. Many estate planning strategies, such as trusts and beneficiary designations, are specifically designed to help assets avoid probate.

Will

A legal document specifying how assets should be distributed after death and naming guardians for minor children. Must go through probate court to be executed.