Aston Bond Law Firm

Newsletters

Holding a property jointly

There are three ways to hold property jointly. It can be held as joint tenants, tenants in common in equal shares and tenants in common in unequal shares.

If a property is held as joint tenants, upon the death of the first owner the asset will pass automatically to the survivor. This is regardless of any wishes that may be given in the Will of the person that died. Neither of the joint owners is entitled to a specific share of the property. They are both entitled to all of the property in equal shares.

If a property is held as tenants in common, each owner is entitled to a specific share, the property being divided between them equally or unequally. This means that each of the owners can instruct what they would wish to happen to their share upon their death, through the use of a Will.

If you die without leaving a Will, the distribution of your possessions will be decided by the state. For example, should you hold a property as tenants in common with an unmarried partner, your partner would not be entitled to your share and it may pass to your children, parents or siblings depending on your personal situation at your time of death. This may have repercussions which you would prefer to avoid.

If other people have contributed to the property or helped you to find the money for the deposit, this can be recognised through a Declaration of Trust. The property would then be held as tenants in common in unequal shares and the Declaration of Trust would specify the size of each of these shares. Please see the final page of this brochure for further details.

Holding a property as tenants in common means that you are able to make use of tax planning methods and if you have a spouse or civil partner, could reduce your inheritance tax bill by up to 114,000.00 through the use of a Will.

For further information give us a call on +44 (0) 1753 486 777.