Joint Tenancy or Tenancy in common? That’s the million dollar question we will address in this topic.
Click on the FAQ below to find out more
What is Joint Tenancy?
Joint tenancy is a legal arrangement in which two or more people own a property together, each with equal rights and obligations. When one of the owners in a joint tenancy dies, that owner’s interest in the property passes to the survivors without the property having to go through the courts.
What is Tenancy in Common?
Tenancy in common is an arrangement in which two or more people have ownership interests in a property or parcel of land. Also, the tenancy in common partner has the right to leave their share of the property to any beneficiary as a portion of their estate
What is right of survivorship?
Right of Survivorship
One of the main differences between the two types of shared ownership is what happens to the property when one of the owners dies. When a property is owned by joint tenants, the interest of a deceased owner automatically gets transferred to the remaining surviving owners. For example, if three joint tenants own a house and one of them dies, the two remaining tenants each obtain a one-half share of the property. This is called the right of survivorship.
Tenants in common have no rights of survivorship. Unless the deceased individual’s will or other instrument specifies that his or her interest in the property is to be divided among the surviving owners, a deceased tenant in common’s interest belongs to the estate.
Joint Tenancy or Tenancy in Common?
Joint Tenancy is most common between husbands and wives and among family members in general, since it allows the property to pass to the survivors without going through probate (saving time and money).
Will my Will still be valid if choose Joint Tenancy?
No. In short if you choose Joint Tenancy, your share of the house will goes to the surviving partner, the part of your Will states how you wish to bequeath your shares will be invalid.
What if both me and my spouse pass on at the same time?