Taxation v. Probate

Our office receives many questions from individuals each year pertaining to the status of their real estate or the real estate of a family member once one of the owners dies. The most common question is "Do I have to go to Court in order to obtain good title to my property?" The most common example is the widow whose husband dies some months before and she is advised by a relative that she would have to seek court action in order to clear the title to the property and place it solely in her name. She and her husband held title as tenants by the entirety which is a common form of ownership (or as joint tenants) amongst married couples. When a couple owns property as tenants by the entirety they each own an undivided one-half of the real estate. The most important feature, however, of tenancy by the entirety is that the surviving spouse obtains full interest in the real estate upon the death of the other spouse. Thus, the widow received the full interest of the real estate immediately upon the death of her husband.

However, most people don't understand that although the property passed to the surviving joint tenant without need of Court intervention, there is in many states an estate tax issue left unresolved.  Even if no tax is owed at time of death by the decedent, most states require that a release of some sort be applied for and filed in the office where the property records lie. The recording of these releases are done so that future purchasers or mortgagees will know that no estate tax was due and no estate tax lien exists on the property.

Our office is well able to assist you in this effort should the need arise. We are glad to explain our services in this area more fully and provide you with the costs associated with our representation. If you or anyone you know falls within these circumstances, it is wise for them to consult with our office to resolve these matters.