What Happens to Jointly Owned Property

Property owned jointly automatically passes on death to the surviving owner(s) regardless of anything stipulated to the contrary in the will.

This may cause problems if, for example, a man in a second marriage wants half the value of his jointly-owned house shared amongst his children from a previous relationship. It also relates to life assurance policies, pension and death in service benefits, and joint bank accounts.

Changing from joint ownership (also known as joint tenancy) to ownership in common (also known as tenancy in common) can protect against future unforeseen situations as each party then owns a share of the property in their own right and can dispose of it as they wish.

Going back to the example, the man’s wife could be forced to sell the family home if it has changed to ownership in common. But there is the facility to give her a ‘life interest’ in the house which means she can stay there as long as she wants and the beneficiaries of the man’s will can only inherit upon her death.

Changing to ownership in common from joint ownership only requires one party to notify the other – it doesn’t need their agreement. But switching the other way round does need the agreement of all owners.

Heritage Will Writing, on 02380 879243, can advise you further and can complete the entire procedure on your behalf.