If you own a property with a partner or spouse, do you know how you own it? Many people do not appreciate there are different ways of owning a property and the consequences of this can be far-reaching in terms of what happens to it when you die.
You can own a property:
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on your own (sole ownership)
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jointly as joint tenants (sometimes called “beneficial joint ownership”) or
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jointly as tenants in common.
It is particularly important that you understand how you own your property as it makes a difference as to whether or not you are able to set up a trust or pass it on in your will.
Joint Tenants
If you own as joint tenants, you each hold the property jointly on trust for each other and the property will pass automatically by survivorship outside of your will upon your death.
Tenants in Common
If you own the property as tenants in common, your share of the property can be left in your will.
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Severance of a Joint Tenancy
Should you own your property as joint tenants but want to set up a trust or leave your share of the property to someone in your will, such as your children, then you will need to sever your joint tenancy to turn it into a tenancy in common. Such action will be necessary if, for example, you wish to set up a Life Interest Trust, leaving a lifetime interest to your partner with the capital value of your share of the property passing to your children on your death.
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Contact me if you would like to enquire about severing your joint tenancy.