Launching a small business is more achievable in the modern business landscape, thanks to technological progress. Capital requirements are not excessive, and a collective of friends, even if they are not relatives, can collaborate to embark on this exciting journey.
But as the business thrives, a need to buy property for its operations may arise. Technically, this property belongs to the business. But who holds ownership between the business partners? And what happens to it in the unfortunate event of a partner’s passing?
Considering Joint Right of Survivorship Deeds is a prudent decision to secure their business interests and ensure a smooth transition of ownership during unforeseen circumstances.
Understanding Joint Right of Survivorship Deeds
Joint Right of Survivorship Deeds, sometimes known as JTWROS Deeds, is a form of property ownership that allows two or more individuals to own a property jointly. The distinguishing feature of these deeds is the survivorship clause. When one owner passes away, their share automatically transfers to the surviving owner(s), bypassing the probate process.
Simplifying ownership transfer
One of the key benefits of Joint Right of Survivorship Deeds for small business owners is the simplified transfer of ownership. With this legal instrument, co-owners can specify that in the event of one owner’s passing, the surviving owners automatically inherit the deceased owner’s property. This streamlines the process, avoiding the need for complex legal procedures.
Furthermore, the remaining owners can smoothly keep the business going. Simplifying ownership transfer helps prevent disruptions to business. This means that the surviving owners can also protect the livelihoods of employees and the interests of all stakeholders.
Avoiding probate and associated costs
Probate is the legal process by which a deceased person’s assets and debts are managed and distributed. It often involves a series of steps, court proceedings and paperwork. However, when a property is held with a Joint Right of Survivorship Deed, it does not go through probate. The surviving owner(s) seamlessly inherit the deceased owner’s share without court intervention.
Probate can be costly and time-consuming, often involving court fees, legal fees and a significant amount of paperwork. With a Joint Right of Survivorship Deed, the business property bypasses probate entirely. This saves money and reduces the administrative burden on your loved ones during an already challenging time.
Peace of mind for the future
For small business owners, planning for the unexpected is a prudent step. Joint Right of Survivorship Deeds offers peace of mind, knowing that the future of their business is secure. It simplifies the transition of ownership, minimizes costs and reduces the risk of disputes. It allows the surviving owners to focus on what they need to do – running their business.