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Greetings, fellow Foolish lemmings!

I would appreciate anyone's insight into the following question:

What is the best way for 3 adult siblings to own a joint piece of property (single family dwelling)? As a joint tenancy? A limited partnership? Other?

I appreciate your reply.

A foolish (sometimes Foolish) Stocklemming
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Hi,

I think if you intend to share the equity (and the tax deductions), you should own it as Tenants in Common. That way, each sibling can transfer their share to whomever they wish. If you own it as Joint Tenants with Right of Survivorship (JTRS), then upon the death of a sibling, the remaining two siblings would inherit their unfortunate sibling's share, so each would own half. Any wives, children, etc. would be left out of the inheritance.

I don't know about the partnership aspect, so it may be better than either of the above two options.

-- docman52
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I just talked with my accountant today about this very issue. A partner and I are buying 3 quads together.

We are going to form a Limited Liability Corporation (LLC). This helps protect us from lawsuits. We will have to file a tax return for the corporation, but the activities of the corporation just get divided up 3 ways and flow through to each of your individual tax returns.

As far as what happens if a partner dies, I would guess the heirs get 1/3 interest in the corporation.

For all the nitty-gritty, check with your accountant or lawyer. LLCs are easy to form and not that expensive.

Mark
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