Joint Tenants and Tenants in Common
We frequently see clients who have previously prepared Wills, and previously purchased property, and yet they cannot tell us whether they own their property as tenants in common or joint tenants. No one has ever explained the difference to them.
These two options make a big difference for your estate. If you own as joint tenants then you both own 100% of the property, so that at the moment of your death the property passes to the other person or people on title. The property is not caught by your Estate or by your Will, and even with litigation your intended beneficiaries may not be able to get the property back.
If you own as tenants in common then you each own a specific percentage of the property. You can own different shares of the property and sometimes this option is utilised if a person is assisting with finance. On your death your share passes to your Estate, not to the other people.
Many people purchase as joint tenants and that is a good and useful option for them but you should have your options properly explained to you.
Do you need to sort out your Estate Plan? Do you have an Estate Plan? Reach out to Janis Donnelly-Coode our Wills and Estates Lawyer for a free 15 minute consultation to answer those questions.