Severance of Joint Tenancy

When property is co-owned by more than one person, it can be held either as Joint Tenants or Tenants in Common. The crucial distinction between these two forms of ownership lies in what happens when one owner passes away. In the case of Joint Tenants, if one owner dies, the property automatically transfers to the surviving Joint owners, irrespective of the directives in an individual’s Will. On the other hand, if the property is held as Tenants in Common, it is possible to bequeath one’s share of the property through a Will.

Opting for Tenants in Common offers several advantages. Firstly, it serves as an effective strategy for addressing care home fees. When the first owner passes away, their share of the property doesn’t transfer to the surviving joint owner, where it could potentially be used to cover their care expenses. Instead, it enters into a life interest Trust, established within the Will. This Trust grants the surviving owner the right to reside in the property for their lifetime and downsize while using 100% of the proceeds from the property. Ultimately, the share of the property is secured for the beneficiaries named in the Will.

Another beneficial aspect is for couples who jointly own property and have children from previous relationships. Structuring a Will in this manner ensures that the surviving partner doesn’t inherit the entire property, granting them unrestricted authority in their own Will. This approach safeguards the interests of the first-to-pass children, ensuring they receive their intended share.

Lastly, severing a joint tenancy can be crucial for divorcing couples, as it prevents one spouse from inheriting the entire property in case the divorce is not yet finalised.

Regardless of the circumstances, a Will is indispensable when property is held as Tenants in Common. It ensures appropriate protection for both the surviving joint owner and the ultimate Beneficiaries.

At Yorkshire Will Writers we can sever the joint tenancy and we also inform the Land Registry who will update your title deeds.