Common Method of Holding Title

Common Methods of Holding Title

  • Home
  • Method of Holding

Method of Holding / Title Vesting

When you purchase property, how you hold title (also called “vesting”) is an important decision. The way title is vested affects ownership rights, inheritance, liability, and how the property can be transferred or encumbered. Below are common methods of holding title we help our clients understand and choose from.

Sole Ownership

One person holds full title. Suitable for single buyers. If married, your spouse may need to disclaim interest so title is in your name alone.

Co-Ownership Options

  • Joint Tenancy:
    Owners hold equal shares with rights of survivorship. When one owner passes away, the remaining owner(s) automatically inherit their share.

  • Tenancy in Common:
    Owners can hold unequal percentages. Each owner can sell or leave their share by will. No automatic survivorship.

  • Community Property (for married couples in applicable jurisdictions):
    Property acquired during marriage is presumed equal ownership. Transfers require signatures from both spouses.

  • Community Property with Right of Survivorship:
    A mix of community property rules and rights of survivorship—when one spouse dies, the other receives full ownership seamlessly.

Other Holding Structures

  • Trusts / Trustees:
    A trust (and its trustee) holds title for beneficiaries. Useful for estate planning, liability protection, or privacy.

  • Limited Liability Company (LLC) / Corporation / Partnership:
    Title is held by a legal entity. You’ll need relevant formation documents, operating agreements, etc.

Choosing the Right Vesting Method

  • Estate & Inheritance Goals:
    Want your spouse to automatically receive your share? Consider joint tenancy or community with survivorship.

  • Flexibility & Transferability:
    Tenancy in common allows each owner flexibility.

  • Liability & Asset Protection:
    Holding in an LLC or trust can offer extra protection.

  • Local Law & Tax Considerations:
    Some jurisdictions require certain vesting forms or treat community property differently under tax law. Always consult with legal or tax professionals.