Joint Tenancy

Why Joint Tenants Could Ruin Your Estate Plan

When couples buy a property together, it is very common for them to own it as joint tenants. In fact, many people don’t even realise there is another option.

While joint ownership works perfectly well during your lifetime, it can sometimes undermine your estate planning without you realising it.

Understanding how joint tenants work – and when it might be better to own property as tenants in common – can make a big difference to how your estate is passed on.

What Does “Joint Tenants” Actually Mean?

When a property is owned as joint tenants, both owners legally own the whole property together rather than having separate shares.

The key feature of joint tenancy is something called the “right of survivorship.”

This means that when one owner dies:

• Their share of the property automatically passes to the surviving owner

• The property does not pass through their Will

• The property does not form part of their estate

Even if your Will says something different, the joint tenancy takes priority.

Why This Can Cause Problems

For many couples this arrangement works fine. However, there are situations where joint tenancy can completely override your estate planning.

Here are some common examples.

1. Children From Previous Relationships

If someone has children from a previous relationship, they may want those children to inherit part of their estate.

However, if the family home is owned as joint tenants:

• The entire property automatically passes to the surviving partner

• The children inherit nothing from the house at that point

If the surviving partner later remarries or changes their Will, the children may never receive any inheritance from that property.

2. Protecting Your Children’s Inheritance

Many couples choose to leave their share of the property in trust so that:

• Their partner can continue living in the home

• Their children ultimately inherit their share

This is commonly done using a Property Protection Trust.

However, this only works if the property is owned as tenants in common.
If it remains as joint tenants, the trust in the Will cannot operate because the property bypasses the Will completely.

3. Care Fee Planning

Some families want to protect part of the home from being fully assessed for future care costs.

One common strategy involves leaving a share of the property in trust for children while allowing the surviving partner to remain living there.

Again, this structure generally requires ownership as tenants in common, not joint tenants.

4. Your Will May Not Work as Intended

One of the biggest misunderstandings in estate planning is assuming that a Will controls everything you own.

Unfortunately, this is not always the case.

Assets that pass outside the Will include:

• Jointly owned property as joint tenants

• Some jointly held bank accounts

• Certain pension death benefits

Because of this, someone could carefully draft a Will but still find that their most valuable asset ignores it completely.

What Is the Alternative?

The alternative is owning property as tenants in common.

With this structure:

• Each owner has a defined share of the property (often 50/50)

• That share becomes part of their estate when they die

• Their Will determines who ultimately inherits that share

This allows much greater control and flexibility when planning your estate.

Does Changing Ownership Affect How You Live in the Property?

No.

Changing from joint tenants to tenants in common does not affect how you live in your home.

You both still:

• live in the property together

• share responsibility for the property

• benefit from its value

The difference only affects what happens when one of you dies.

A Simple Change That Can Make a Big Difference

For many couples, changing ownership from joint tenants to tenants in common is a simple legal step that can ensure their wishes are properly carried out.

Without this change, the family home – often the most valuable asset in the estate – may not pass according to the plan set out in the Will.

Final Thoughts

Estate planning is about making sure your wishes are followed and your loved ones are protected.

Something as small as how your property is owned can have a huge impact on the outcome.

If you are unsure how your property is currently owned, it is worth checking. A short review now could prevent serious complications for your family in the future.

If you would like advice on wills, trusts or property ownership, the team at Secure Wills would be happy to help you understand your options.