How should I take title with husband and co-signor?

[Bridget A.]

My husband and I are buying a 1M house and we are putting down 235k.  His father is co-signing the loan so we could go conventional. For his protection we are putting 1 year worth of payments including property taxes in a trust account. He also wants us to sign a quit claim deed if we don’t make payments. He will keep the deed and won’t file unless we miss payments. We are going to refinance in 6 months - 1 year and get him off the loan. He wants to be on the title, with 50% ownership as tenant in common. This concerns me. He has 4 children including my husband. He is in his 70s. If he passes away, it’s my understanding that his interest goes to his heirs. It could also go in probate. We are going to be making payments and have a good amount of equity in the home, so I also want to protect my husband, baby on the way and myself. How should we take the title? Any suggestions? I want to make sure his interest goes to us if he passes away.