Joint Tenancy v. Tenants in Common
Joint Tenancy v. Tenants in Common
When you purchase real estate with more than one person; you can own it jointly, that is as joint tenants; or you can own as tenants in Common. The difference between the two is that with Joint Tenancy; there is a right of survivorship, if one of the owners dies, the remaining owner will become the 100% owner of the property. With co ownership as tenants in common; if a person dies; their share goes to their estate and whatever it says in their Will dictates who will receive it.
Lots of people want to own property as joint tenants because they think they can reduce probate fees; and they can; but there are other problems that can come up.
I met with a client today to discuss his Will. He had 2 kids from his first marriage and his current wife had 2 kids from her previous relationship. Their bulk of their estate is in their principal residence; which they own as joint tenants. The problem is that he wants his kids to receive something when he dies, but with joint ownership, the house will go automatically to his new current wife and his 2 kids will likely ultimately not get anything. The Joint Tenancy can be severed by filing documents which your lawyer or notary can prepare.
The bottom line here is that the decision about owning as Joint Tenants vs Tenants in Common is often one that does not receive the attention it deserves. When you’re buying a property, make sure you ask difference so you understand the advantages and consequences of each method if ownership.
For more information you can always email me at david@davidnotary.com.
Tel: 604 685 7786
Email: david@davidnotary.com
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