Comprehending What Is Meant By Jointly Owned Property In Reference To A Will
Meaning of joint property and why is it important?
Joint property is a situation when a property is owned by more than one person – that is there is more than one name associated to the ownership of the asset. Many different types of assets can be jointly owned such as a house, building, land or bank account.
When an asset has more than one name attached to it, the nature of the joint ownership is further defined. In the UK, for example, there are two ways of owning a property jointly. One is known as a joint tenancy and the other is a tenancy in common. It is very important to distinguish these two kinds of property ownership because it effects how that property is dealt with after the death of one joint owner.
1. Joint Tenancy
If property ownership is defined as a joint tenancy, on the death of one owner, the property is inherited by the living co-owner. This means that ownership is passed onto the surviving name of that jointly owned property regardless of what is written in the deceased owners will. Therefore, a property that is owned by way of a joint tenancy cannot be passed through a will.
2. Tenancy in Common
The second way of joint property ownership is a tenancy in common. When property ownership is defined as a tenancy in common, then on the death of one owner the deceased person’s share is transferred in accordance to what is written in the deceased’s will. Therefore, if you want to transfer your share by will of a jointly owned property you have to make sure that it is owned as a tenancy in common. Further details about tenancy in common is given in joint property.
How do you know whether a jointly owned property is held as a joint tenancy or tenancy in common?
If you do not expressly determin if a property is owned as a joint tenancy or as a tenancy in common then other factors are taken into account to find the nature of the ownership. For example, married couple who hold a property in both names will usually be determined as a joint tenancy and as such if one dies the deceased person’s portion will automatically go to the surviving spouse.
Similarly, a bank account held in joint names will usually be interpreted as a joint tenancy. Property held as a joint tenancy will be owned equally by the named persons. However, if there is anything to indicate that the owners own different shares rather than each owner owning the whole then the property is held as a tenancy in common. Words or actions that suggest that the owners own unequally indicate that the property is held as a tenancy in common.
More information about this can be found at will forms.
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