It is very important that you don’t rush into naming ownership, as this is a very important part of your life and of how to manage your investment in buying Real Property.
There are many bad things that can happen from vesting title and ownership in the wrong way. It can even lead to the loss of your real property. How title is vested has important legal consequences and tax consequences that can be detrimental to your life and your finical stability and security.
These are some ways that exist to claim ownership:
Corporation: a corporation is a legal entity that is created under state law, consisting of one or more of the shareholders but viewed under law as having an actuality and disposition separate from such shareholders.
Partnership: a partnership is an association of two or more persons who can do business for profit as co-owners, as governed by the Uniform Partnership Act. A partnership may hold title to real property in the name of the partnership.
Trustees of a Trust: a trust is an arrangement where the legal title to property is transferred by a grantor to a person otherwise known as a trustee, to be held and managed by that person for the benefit of the people named and specified in the trust agreement, otherwise known as the beneficiaries. A trust is generally not an entity, or person that can hold title in its own name. Instead title is often vested in the trustee of the trust.
Limited Liability Companies (LLC): this form of ownership is a legal entity and is similar to both the corporation and the partnership. The operating agreement will determine how the LLC functions and is taxed. Like the corporation its existence is separate from its owners. An LLC protects the owners from personal liability from business debts and claims.
The tax consequences may be different for same sex legally related couples when applicable in certain states (most states still do not honor domestic partnerships or same sex marriages). You may wish to consult an attorney or tax advisor to determine the best form or way to vest your title in a specific language of the different types of ownership for your particular situation.
