Joint versus tenancy in common

How you hold legal ownership of assets matters when it comes to estate planning.  A joint tenancy or joint ownership is a form of ownership under which on the death of one owner, property automatically passes to the survivor(s). It does not matter what your will says.  Any property owned jointly will pass to the survivor.

The other form of property ownership is the tenancy in common. Your share of any property owned by you (in the case of real estate) is stated on the Record of Title e.g. a half share.  How your share of the property is dealt with on your death depends on the provisions made in your will. 

Often people own real estate as tenants in common in equal shares in order to grant each other what’s called a life interest. This means that the survivor does not own the deceased person’s share but has the right to occupy the property for their lifetime or purchase a replacement property using the estate’s share. This can be a useful tool in blended family situations so that couples can provide for each other and children from a previous relationship. 

To find out more see Estate planning and estates.

Disclaimer: The contents of this article are general in nature and are not intended to serve as a substitute for legal advice on a specific matter.  In the absence of such advice no responsibility is accepted by Bryce Williams Law Limited for reliance on any of the information provided in this article.