Joint Tenants Vs Tenants in Common
When you purchased your property or re mortgaged an existing property and if you are a married couple or jointly own your property with a partner, you would have been asked on which basis you wish to own your property
Joint Tenants Vs Tenants in Common When you purchased your property or re mortgaged an existing property and if you are a married couple or jointly own your property with a partner, you would have been asked on which basis you wish to own your property CONTACT US
Beneficial Joint Tenants or Tenants in Common
Tenants in Common Explained
Owning property as tenants in common means you jointly own the property but as co-owners you are regarded in law as having separate shares. Often the shares are held on a 50/50 basis, but if one person is putting more of their money in than the other, the shares can be more specific. In the event of the death of a Tenant-in-Common their share of the property passes to the beneficiary in their will.
What are the main benefits of owning property on a Tenants in Common basis ?
Protect your children’s and your bloodlines future inheritance in the event that the surviving partner should remarry.
It can help protect you from paying long term care home fees.
Your wishes for your property are written into your Will so only you can change it. (more control as life changes)
It can help protect you from inheritance tax.
Beneficial Joint Tenants Explained
Owning your property as beneficial joint tenants means the property belongs to you and the other owner or owners jointly. There is no separate distinction between tenants You must all act together as a single owner.
You will not own any specific shares in the property and you cannot give away a share of the property in your Will. In the event of death of one of the joint tenants, legally your interest in the property automatically passes to the surviving owner or owners.
Often this is the form of ownership is chosen by married couples or civil partners, where these parties are content for the survivor to be the absolute owner. The ownership of the property held on a Joint Tenants basis cannot be altered by a Will. A Will made by a Joint Tenant, which tries to leave the property to anyone other than another legal Joint Tenant would be ineffective.
How does it affect my will?
If two people own a property as “joint tenants” and one of them dies, the other will automatically become the owner of the whole property, regardless of the any requests or wishes laid out in the deceased owner’s Will.
On the flip side if two people own their property as “tenants in common”, each person only owns a share in the home. When one tenant in common dies, their share will pass into their estate and be dealt with by the personal representatives. If a Will has been put in place this would be their chosen Executors, If no Will is in place then the rules of intestacy would apply.
To create your Will in the correct way we will need to know how your property ownership is currently set up in order that we can fully explain the implications for you and the people/assets that you leave behind.
For more information please call Angela Jane on 01604 953130 mobile: 07825 331447 or click here to contact us.