What happens to jointly owned property when someone dies?

Most people assume that when there is a jointly owned property and an owner dies that the property automatically passes to the remaining owner.  Whilst that is often the case, what happens to a property after a person dies completely depends upon the way in which it is owned.

There are two ways in which a property can be owned by two or more people:

Joint Tenants

Joint tenants is the most common way that couples tend to purchase a property.  When a property is owned as joint tenants, upon a person passing away, their interest automatically passes to the surviving owner.

Owning a property as joint tenants has the benefit that upon the death of an owner it can be dealt with relatively simply without the need for a Grant of Probate.   The title of the property can be updated with HM Land Registry by a fairly simple application, although there may be a small fee payable.

The potential downside of owning a property as joint tenants is that if the surviving owner were to ever need to move into a care home then the full value of the property can be taken into consideration and potentially used up to pay for the cost of their care. 

Tenants in Common

Where a property is owned as tenants in common, each person owns a set share of the property e.g 50%. This share does not automatically pass to any surviving owners and instead will pass under the terms of the Will of the deceased owner.

Tenants in common ownership is a great way of protecting assets for future generations, however it does make dealing with property formalities following a death a little more complex as a Grant of Probate will be required and the title to the property would need to be formally updated to reflect who it has been gifted to in the Will of the deceased.  

Should you need any assistance in dealing with a property after the death of a loved one or wish to discuss property ownership in the context of long term planning, please feel free to contact our friendly team on 033 03001103.