Picture this: After 30 years of marriage, you and your spouse have built a beautiful life together. Your home is your castle, your sanctuary, and likely your most valuable asset. You've done everything right – you have wills, you communicate with your family, and you think you're prepared.
Then tragedy strikes. Your spouse passes away unexpectedly.
Instead of grieving and healing, you find yourself sitting in a lawyer's office being told that despite having a will, your family home must go through probate court. The process will take months, cost thousands of dollars, and become a matter of public record.
How did this happen? Two missing words on your property deed.
The Costly Mistake That Happens Every Single Day
In my nearly three decades as an estate planning attorney, I've seen this scenario play out numerous times. Families who thought they had everything in order suddenly discover that they didn’t and are now facing an expensive, time-consuming legal battle – all because of a simple oversight on their property deed.
The mistake? Not understanding the difference between "joint tenants" and "tenants in common."
What "Joint Tenants" Really Means (And Why It's So Powerful)
When you own property as "joint tenants," you're creating what lawyers call "joint ownership with right of survivorship." This means:
- Both spouses own the entire property together
- When one spouse dies, the surviving spouse automatically receives full ownership
- No probate court required
- No lengthy legal proceedings
- No expensive attorney fees for transferring the property
Think of it like a relay race. When one runner finishes their leg, they automatically pass the baton to their teammate. No referee needed, no judges to consult – it happens instantly by the rules of the race.
The Probate Trap: "Tenants in Common"
Here's where families get blindsided. When those two magic words "joint tenants" don't appear on your deed, the law assumes you own the property as "tenants in common." This means:
- Each spouse owns exactly half of the property
- There is NO automatic transfer when one spouse dies
- The deceased spouse's half must go through their estate plan
- If you have a will, that means probate court
- Legal fees, court costs, and months of waiting
Imagine you and your spouse each own half of a puzzle. When your spouse passes away, their half doesn't automatically become yours. Instead, the court has to decide what happens to those puzzle pieces – even if everyone knows they should go to you.
Real-World Consequences That Will Shock You
Let me share what happened to the Johnson family (names changed for privacy). Bob and Linda Johnson bought their dream home in 1995. They were careful people – they had wills prepared by an attorney and thought they were fully protected.
When Bob passed away in 2019, Linda discovered their deed listed them as "tenants in common" instead of "joint tenants." Even though Bob's will left everything to Linda, she couldn't simply take ownership of the house.
The result?
- 8 months in probate court
- $10,000 in legal fees
- Public court records revealing their private financial information
- Emotional stress during the worst time of Linda's life
All of this could have been avoided with two simple words on their deed.
Why Do-It-Yourself Property Deeds Are Playing With Fire
In today's digital age, it's tempting to handle legal documents yourself. There are websites, software programs, and templates that promise to save you money on legal fees. When it comes to property deeds, this is one of the most dangerous gambles you can take.
Here's why DIY property deeds fail so often:
The Language Must Be Precise
Legal documents aren't like business contracts where "close enough" works. Every word matters. Every comma has significance. One small error can completely change the legal meaning and leave your family vulnerable.
State Laws Vary Dramatically
What works in Minnesota might be completely invalid in another state and vice-versa. Property laws differ significantly between states, and using the wrong language or format can create legal nightmares.
You Don't Know What You Don't Know
Professional estate planning attorneys understand the intricate connections between property ownership, tax consequences, asset protection, and long-term care planning. A DIY approach misses these crucial connections.
Beyond Property Deeds: The Complete Protection Your Family Deserves
While fixing your property deed is crucial, it's just one piece of a comprehensive estate plan. Smart families are taking additional steps to protect everything they've worked for:
Joint Tenancy Does Not Avoid Probate
Many people often mistakenly believe that owning everything as joint tenants completely avoids probate. While owning your home as joint tenants allows it to pass to your spouse without probate upon your passing, it does NOT avoid probate entirely. Instead, it merely kicks the can down the road. Unless you do additional planning, such as putting your home in a trust, probate will still be required to sell or otherwise transfer ownership of the property when the last spouse passes away.
Trust-Based Estate Planning: Your Probate Shield
The most sophisticated families are moving beyond simple wills to trust-based estate planning. Unlike a will, which must go through probate court, a properly funded trust allows your assets to transfer immediately to your beneficiaries.
Benefits include:
- Complete probate avoidance (not just for real estate)
- Privacy protection (no public court records)
- Immediate access to funds for your surviving spouse
- Increased protection from legal challenges
- Reduced costs and faster distribution
Long-Term Care Protection: Safeguarding Your Life's Work
Here's a sobering statistic: 70% of people over age 65 will need some form of long-term care. The average cost of a nursing home in Minnesota is over $12,000 per month as of the time of this article. On the gulf coast of Florida, it is over $10,000 a month.
Without proper planning, a lengthy nursing home stay can completely wipe out a lifetime of savings, leaving your surviving spouse impoverished and your children with no inheritance.
Advanced planning strategies can help protect your assets while ensuring you receive quality care when needed.
If you would like to discover how you can legally protect your home and life savings from long-term care and nursing home costs, then download your copy of my guide, Save Our Home: How to Protect Your Home and Life Savings From Long Term Care and Nursing Home Costs. You can get your copy by clicking here.
The Blended Family Challenge: When Stakes Get Even Higher
The property deed problem becomes exponentially more complicated in blended families. If you have children from previous marriages, a "tenants in common" deed can create a legal nightmare.
Here's what happens: When one spouse dies, their 50% ownership doesn't automatically go to the surviving spouse. Instead, it might be split among their biological children. Suddenly, your surviving spouse finds themselves owning a house with their stepchildren – who may have very different ideas about what should happen to the property.
This scenario has torn apart countless families and created bitter legal battles that last for years.
Real-World Consequences That Will Shock You
Let me share what happened to the Anderson family (names changed for privacy). John and Sarah Anderson had each been previously married and had children with their prior spouses. After they got married, they bought a lake home. They were careful people – they had wills prepared by an attorney and thought they were fully protected.
When John passed away, like Linda Johnson, Sarah discovered their deed listed them as "tenants in common" instead of "joint tenants." Even though John's will left their home and lake home to Sarah, she couldn't simply take ownership of the homes. Even worse, John had a falling out with one of his son’s prior to his passing and his son contested his dad’s will and demanded his share of his dad’s estate, which included his “half of the lake home”.
The result?
- Nearly three years in probate court
- $40,000+ in legal fees
- Public court records revealing their private financial information
- Emotional stress during the worst time of Sarah's life
The worst part is that much, if not all of it, could have been avoided with two different words on their real estate deed and better estate planning.
The Hidden Tax Traps That Catch Families Off Guard
Property ownership affects more than just probate. The way your deed is written can have significant tax consequences for your family:
- Capital gains tax implications when property is eventually sold
- Property tax reassessment that could dramatically increase annual costs
- Estate tax exposure for larger estates
- Gift tax consequences if ownership is transferred incorrectly
- Loss of homestead in Florida if the deed and/or your estate planning documents do not contain the required language or is transferred incorrectly
Professional estate planning takes all of these factors into account, creating a coordinated strategy that minimizes your family's tax burden.
Your Action Plan: Protecting Your Family Starting Today
Don't let your family become another cautionary tale. Here's what you need to do:
Step 1: Review Your Current Property Deed
Locate your property deed and examine how ownership is listed. Look for the specific words "joint tenants" or "tenants in common." If you are married and own a home in Florida, you should also look for the words “tenancy by the entireties”. If you're not sure what you're looking at, or if the language seems unclear, you need professional help immediately.
Step 2: Evaluate Your Complete Estate Plan
Your property deed is just one component of your overall estate plan. Consider these questions:
- When did you last update your will or trust?
- Have you addressed long-term care planning?
- Are your beneficiary designations current?
- Do you have proper powers of attorney in place?
Step 3: Get Professional Guidance
Estate planning isn't just about documents – it's about peace of mind. Working with an experienced estate planning attorney ensures your plan is comprehensive, current, and coordinated.
Why Families Choose Roulet Law Firm for Their Most Important Planning
For nearly 30 years, I've helped thousands of families protect their most valuable assets and create lasting legacies. What sets our approach apart:
- Proven expertise: Featured in USA Today, Live Life Large, Money Matters, The Epoch Times and other national media
- Dual-state knowledge: Licensed in both Minnesota and Florida with offices in both states
- Teaching credentials: I educate other attorneys, CPAs, and financial professionals globally
- Published Author: I’ve authored several books, guides and white papers on estate planning, asset protection, elder law and long-term care planning
- Sophisticated planning: Advanced strategies typically available only at large firms, delivered with the personal attention of a boutique practice
- Comprehensive approach: We address estate planning, tax planning, asset protection, and long-term care planning in one coordinated strategy
Our clients range from those with $500,000 in assets to multi-millionaires, but they all share common goals: protecting their families, avoiding unnecessary taxes and costs, and ensuring their wishes are carried out efficiently.
Take Action Today – Your Family's Future Depends On It
Every day you wait is another day your family remains vulnerable. Don't let a simple oversight on your property deed force your loved ones into expensive probate proceedings during their time of grief.
Ready to protect your family? Here's how to get started:
Call us today to schedule your consultation at either (941) 909-4644 for our Florida office or at (763) 420-5087 for our Minnetonka, Minnesota office. Or you can fill out the contact form on this page and a member of our team will reach out to you to schedule your consultation.
Want to discover more first? Join us in my upcoming masterclass where I'll reveal the strategies I use with my private clients to help them avoid probate, save on taxes, protect the money they leave for their children in the event they get divorced, and much more. Click here to sign up.
Concerned about long-term care costs? Download your free copy of my guide: "Save Our Home: How to Protect Your Home and Life Savings From Long-Term Care and Nursing Home Costs" by clicking here.
Don't leave your family's financial security to chance. Those two words on your property deed could mean the difference between a smooth transition and a costly legal battle. Contact us today and take the first step toward complete peace of mind.
Remember: Every family's situation is unique. This article provides general information and should not be considered legal advice. Always consult with a qualified estate planning attorney to discuss your specific circumstances.
