Joint Tenancy

A Joint Tenancy is a type of joint ownership of property, where each owner is called a “joint tenant”, and each owns the whole of the asset, rather than a distinct fractional share. When a joint tenant dies, the asset in question does not pass to his representatives as part of his estate. Instead, the asset (usually land, but can be a joint bank account or shares, for example) automatically passes to the surviving joint tenant(s). Each joint tenant is entitled to an equal share in the asset for inheritance tax and capital gains tax purposes.

It is one of two main types of joint ownership of property. The other is called a tenancy in common. It is possible to sever a joint tenancy and create a tenancy in common.

Disadvantage

You must have a legal agreement. Difficulties can happen; if there is a breakdown in the tenants’ relationship, there is the potential for assets to be frozen. Also, if one tenant dies, there is a loss of control over the distribution of assets after death.

Advantage

The main benefits of joint tenancy are that you can avoid probate courts, sharing responsibility, and maintaining continuity if one tenant dies.

Cost Fixed fee £450 + vat for arranging a Joint Tenancy