What’s in a name by which you could call it any other name and it would smell just as sweet?

If you are a homeowner, you have signed a deed at least once in your life.  Deeds are all around us, Real Estate Agents, Title Agencies, Attorneys, Rental Companies; everywhere you turn, someone seems to be talking about deeds.  Deeds also play an important role in estate planning because homes are probate property, meaning that after your death, your home needs to go through the probate court before it can be given to your family.

As part of an estate plan, there are a couple of basic options for handling your home. The first and simplest option is to do nothing! If you own your home outright, it becomes part of your probate estate on your death.  Once in probate, your home will then either be sold or distributed out to your children equally.  If you have a spouse, it will likely go to your spouse.

The next option is to own your home jointly with your beneficiaries.  This must be distinguished from “tenants-in-common.” Generally speaking, though your home is owned jointly, the surviving owners will take the home free and clear of your interest on your death. Owning a home jointly typically involves either a quitclaim or warranty deed from the current owners to the current owners and intended beneficiaries.

A final option is what is called a ladybird deed.  Similar to joint ownership, the beneficiaries will receive the home on your death. However, the critical difference is that the beneficiaries will only have an ownership interest in the house after your death. Like a joint property, a ladybird deed is just another form of quitclaim or warranty deed.

So what IS in a name? Why does the type of deed and the method of transferring your home matter?

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