ABA Family Legal Guide

Home Ownership

Property Rights and Restrictions

Ownership Options

Does owning a home affect your estate?

Ownership of property could very well affect your estate, depending on the type of ownership you have in the home. For example, if you are a joint tenant, your home will pass directly to the other joint tenant and will not be a part of your estate.

As you acquire equity in your home, your estate could be vulnerable to federal estate tax or state inheritance tax, if the equity along with your other assets exceeds certain statutorily established sums. If you do not have a will, you should consider preparing one now that you own a home. (For more details, see chapter 18, "Estate Planning.")