- Ohio law recognizes a number of methods of joint ownership of real estate. Prior to April 4, 1985, the state allowed deeds creating a special form of property ownership between married couples called tenancy by the entirety. Ohio no longer allows the creation of this type of deed, but it still recognizes tenancy by the entirety deeds signed before April 4, 1985. Married or unmarried property owners might have a deed that identifies them as joint tenants with rights of survivorship. When one owner passes away, his interest in the property passes to the surviving owners automatically and without the need for probate. Unlike these other forms of joint ownership, tenancy in common has no survivorship feature. When one owner dies, his ownership interest passes to his heirs or beneficiaries, typically via the probate process.
- In Ohio, as in other states, when a decedent dies with a valid will, his share of property he owns as a tenant in common is distributed according to the terms of his will. The decedent’s portion of the property becomes part of his probate estate and his executor must first use the decedent’s assets to pay any outstanding taxes or debts. If the decedent left insufficient assets aside from his real estate to pay his debts and taxes, his creditors could force the sale of his real estate and collect his debts from his share of the property. Assuming this does not happen, the decedent’s share of the real estate will be distributed to the beneficiaries named in his will.
- When an Ohio decedent dies without a valid will, his share of real estate owned as a tenant in common is distributed to his next of kin in accordance with the state’s intestacy statutes. The statutes determine which of a decedent’s relatives inherits his property, and in what shares, based on the degree to which he is related to the decedent and the value of the decedent’s estate. Generally, if the decedent leaves behind a spouse but no children, the spouse inherits the entire estate. If a decedent leaves behind a spouse and children, the spouse and children share his estate. If a decedent leaves behind no spouse and no children, his parents inherit his estate.
- Ohio residents have a number of options for estate planning and for real property ownership. Consult an attorney to determine which combination of options is best for you.
Tenancy in Common
Will
Intestacy
Considerations
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