Joint Tenants, or Tenants in Common?

When looking at how inheritance works a key issue  is exactly how your house is owned.

There are many people who co-own a house - but as Joint Tenants, or Tenants in Common? So, what is the difference?

• Joint Tenants - effectively you both own all of it. So, if one of you passes away the survivor automatically owns all of it - no matter what it says in your Will. Most couples tend to own a house this way, but it reduces what you can do in your WIlls.
• Tenants in Common - effectively you each own just half of it. When you die, what happens to your half depends entirely upon your Will.

In your Will you may be able to protect part of your house against being lost to outside demands, such as Inheritance Tax, debts, remarriage, residential Care Fees etc - but this will only work if you do not own the house as Joint Tenants.

The ownership can be changed to Tenants in Common, by undertaking a Severance of Tenancy. Your Will writer can help you check the ownership and make the change if necessary.