Joint Ownership
Where land or property is held by more than one person as JOINT OWNERS in equity, on the death of one joint owner his/her interest automatically passes by survivorship to the surviving joint owner(s) under the intestacy law of England & Wales (for Scottish law go to the Scottish Wills section)
Each owner in common is free to leave his beneficial interest (his share) to whoever he wants, however this can cause problems for the survivor particularly in the case of the matrimonial (or family) home.
The surviving spouse/civil partner/unmarried partner could be forced to sell the property to settle the gift of entitlement to the beneficiary. A simple solution to this is to give the survivor a 'life interest' in the property, enabling them to remain living in the house as long as they wish or for the remainder of their lifetime. It is only when the survivor dies that the intended named beneficiary in the Will can benefit and take the gift of the hosue (or proceeds of the sale)
Severing an ownership agreement
To sever a joint ownership to ownership in common requires one party to notify the other as to their intentions to do so, with the other party/parties signs in agreement.
Both (or all) co-ownership in common sihn a Notice of Severance of Joint Tenancy, in effect notifying each other (or all co-owners) of the intention to sever the existing ownership status.
Where the property is subject to a mortgage or other loan, the, the mortgagee (lender) should be notified and the severance registered on the deeds through the local Land Registry Office.
We as an your Estate Planning Practitioner can advise you further on the action that you need to be taking and we can undertake to complete the entire procedure on your behalf as part os our service.
Summary
Joint Tenants
- property passes to survivor regardless of instructions in the Will
- property will pass irrespective of survivorship period
Tenants in Common
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ability to 'gift' your share of the property upon your death
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the family home may be your main legacy to your children - severance of tenancy can help protect the property from future unforeseen situations
- a life interest in your share will protect your spouse/partner from having to sell
SPECIAL NOTE
The types of ownership refered to above are more commonly known as JOINT TENANCY and TENANTS IN COMMON.
It is for ease of understanding that they have been referred to as JOINT OWNERSHIP and OWNERS IN COMMON.