Why Would I Convert Property Ownership from Joint Tenants to Tenants in Common?
Squiggle Support Team
Last Update 3 months ago
INTRODUCTION
Co-owning a property carries significant inheritance implications, which is why, these days, more people are choosing to change their property ownership from Joint Tenants to Tenants in Common.
There are several reasons for this, and this article explores the estate planning benefits of making this shift.
UNDERSTANDING THE DIFFERENCES
Joint Tenancy and Tenants in Common are two main ways to co-own a property.
Under Joint Tenancy, owners co-own the property under a “right of survivorship.” If one of the co-owners in a property passes away, the surviving owner(s) inherit(s) the shareholding. This happens by law, even if it's stated otherwise in a Will.
Tenants in Common prevent the automatic transfer of ownership of a co-owned property to the co-owner(s). Each owner can have a distinct shareholding in the property and can control how their shareholding is distributed according to their wishes in a Will.
REAL-WORLD RAMIFICATIONS OF THE JOINT TENANCY SCENARIO:
Let's imagine a scenario where two brothers inherit their mother's property, and they co-own the property.
Under Joint Tenancy, the entire property goes to the surviving sibling if one of the brothers dies.
This raises all sorts of issues. Imagine a case where you are one of the siblings. Your spouse or children may not actually inherit your interest in the property, even if it were stated in your Will.
However, Tenants in Common would ensure that your wishes are carried out as per your Will by allowing you to direct your share to whomever you wish.
HOW TO CHECK THE TYPE OF PROPERTY OWNERSHIP
If you co-own a property, you can check whether it's held as Joint Tenants or Tenants in Common by consulting any existing documentation in your possession, such as property purchase documents, or when you remortgage the property.
If you cannot locate these documents, you can use the Land Registry Property Information Service to locate the most up-to-date information for a nominal fee.
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