Tenants in common

We’ve already described what joint ownership is above, but what does ‘tenants in common’ mean when it comes to property ownership?

The difference is actually quite simple!

Everything is exactly the same as if you jointly owned, but the primary difference is that instead of the pair of you owning 100% of the property, you would each separately own 50%.

This means that if one of you dies, then the other already owns their 50%, and if the surviving party then inherits the additional 50%, the inheritance tax liability is reduced or could be eliminated.

Just be aware that when your property is owned "Tenants in. Common" your will may need to be adjusted to ensure that your part of the property is ealt with in accordance with your wishes.

Apart from reducing any potential Inheritance Tax Liability, by switching the ownership type of your property to Tenants In Common you are also protecting any equity.

We know from experience that there are many instances where equity in a property can be sought after by loan companies attempting to secure a debt against your home, or local authorities looking to seize your home to pay for care costs in later life.

By transferring your home to Tenants in Common, any claim on your partner's share of the property would exclude any equity you now own separately rather than if the property was jointly owned when the entire value of any equity could be affected.

Robert Shaw & Company

181 Church Road, Yardley, Birmingham B25 8UR Tel: 0333 240 0851 (local call rate)

Email: wills@robertshawandco.co.uk

Call us: 0333 240 0851