Jointly owned property
A property owned in joint names can be held in one of two quite distinct ways. If the property is owned as “equitable joint tenants” then, on the death of one owner, the property will automatically pass to the survivor, irrespective of the deceased’s will or the intestacy rules. Under this type of joint ownership, it is not therefore possible to leave your interest in a property by will to any third party.
The alternative to an equitable joint tenancy is an “equitable tenancy in common”. Here, the shares of each joint owner are distinct and can be left to others by the terms of a will, or in accordance with the intestacy rules. The ownership shares can be equal, or in any other proportions agreed by the owners. A Declaration of Trust will formally record the shares and the terms on which the parties agree to own the property.
If you are buying a property jointly, it is very important to consider how you will own it and whether a Declaration of Trust is needed. Franklins can advise you on this, and draft all the necessary documents, such as Declarations of Trust and wills.
An equitable joint tenancy can be converted to an equitable tenancy in common by the decision of any owner, acting unilaterally if they wish, to serve a notice on the other owner(s), “severing” the joint tenancy. Again, Franklins can advise on the processes for and consequences of severance.