Jointly Owned Properties, do you know where your share will pass to on your death?
16 March 2023
Clare Wyett, Senior Probate Manager explains that in a number of cases when she meets with clients to discuss their Wills, more often than not clients do not know how their property is held between them.
This aspect is key in estate planning and making Wills and therefore needs to be established.
There are 2 distinct ways in which a jointly held property can be held, and the way that one person’s share of that property will pass on their death, will invariably be dictated by how the property is held on their Deeds – the two different options are described below:
(a) Joint tenants
Two (or more) people who are co-owners of property in such a way that when one of them dies the whole property automatically passes to the survivor(s) irrespective of anything the Will or Intestacy Rules may say. However, half the value of the property has to be counted in for purposes of calculating Inheritance Tax. Where the joint tenants were any people other than husband and wife, Tax on the half value is payable. No tax will be payable if the other joint tenant was the spouse; not because of the nature of the joint tenancy but because of the “spouse exemption” in the Inheritance Tax Rules.
(b) Tenants in common
Two (or more) people who are co-owners of property in such a way that when one of them dies the share of that person will pass under his or her Will or Intestacy and not to the other joint owner by virtue of survivorship.
Do you know how your Deeds are held?
If you need help in establishing this aspect and, also then advice on how your property may pass on your death please contact us in the Wills & Probate Team on 01302 341414 or 0114 272 1884, alternatively, you can fill out our online enquiry form.
We have further articles on our website relating to Wills, here are four that you may find informative:
