Understanding Property Ownership Types
When you own property with other people, the type of ownership you choose has significant implications for what happens to your share when you pass away. Understanding these differences is crucial for effective estate planning.
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Types of Property Ownership
Sole Ownership
You own the property entirely by yourself. You have complete control over the property and can leave it to anyone in your will.
- Complete control over the property
- Can sell, mortgage, or gift without anyone’s consent
- Can leave to anyone in your will
- Full responsibility for mortgage and maintenance
- No automatic transfer on death
Joint Tenants (Joint Tenancy with Right of Survivorship)
All owners have equal shares in the property. When one owner dies, their share automatically passes to the surviving owners, regardless of what their will says.
- Automatic transfer to survivors, which may avoid probate in some jurisdictions
- Simple and straightforward for couples
- May offer some protection from an individual owner’s creditors, depending on the jurisdiction
- Cannot leave your share to specific beneficiaries
- All owners must agree to sell
- May not align with your will intentions
Tenants in Common
Each owner can have different percentage shares and can leave their share to anyone they choose in their will. This is the most flexible form of co-ownership.
- Can own unequal shares (e.g. 70/30)
- Can leave your share to anyone in your will
- More flexibility for estate planning
- No automatic transfer on death
- Share may go through probate, depending on the jurisdiction
- Potential for disputes with co-owners’ heirs
Held in Trust
The property is owned by a trust rather than individuals. The trust document determines how the property is managed and distributed.
- May avoid probate in some jurisdictions
- Provides detailed control over distribution
- May offer some protection from creditors and lawsuits, depending on the jurisdiction and the terms of the trust
- More complex and expensive to set up
- Ongoing administration requirements
- Less flexibility once established
Important: Joint Tenancy Warning
If you currently own property as Joint Tenants, your share will normally pass automatically to the surviving joint tenant(s) when you die, regardless of what your will says. Some owners who want their share to go to specific beneficiaries, such as children from a previous marriage, convert to Tenants in Common instead. A property lawyer can confirm whether that applies to your property and what it would involve where you live.
How to Change from Joint Tenants to Tenants in Common
The process varies by country, but generally involves:
- United Kingdom: Complete a "Severance of Joint Tenancy" form (Form SEV) and send it to HM Land Registry. The other owner(s) must be notified. For a property in England or Wales, we can draft that notice to the other owner(s) from your property record.
- United States: File a deed that converts the ownership type. Requirements vary by state - consult a real estate attorney.
- Canada: Register a "Severance of Joint Tenancy" document with your provincial land registry office.
- Australia: Lodge a "Transfer Severing Joint Tenancy" form with your state’s land titles office.
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Additional Resources
For country-specific guidance on property ownership:
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