Tenants in Common or Joint Tenancy ?
Joint tenancy can be referred to as joint ownership of property and all the owners have equal and undivided share in the property. Joint tenancy clearly defines that what happens when the owners dies.
Rights of Survivorship
The authorized name of joint tenancy is “joint tenancy with right of survivorship”. Such type of right is important because they give the joint tenant the right to the property of the deceased. This means that if you have a joint tenancy than on the death of your partner, you and your partner will receive a share from the property of the deceased. However, under joint tenancy the share to your property cannot be willed to your heirs.
Joint Tenancy Properties
According to joint tenancy, all the owners receive equal share in the property. For example; if a person jointly owns a 100 acre land with two other members, then the other two have equal share in the 100 acre land. Joint tenancy features undivided share, one is entitled to use entire property of joint tenancy. The basic plus point of joint tenancy is that the deceased share is passed to survivors which helps in avoiding probate.
Conversion of joint tenancy
If the second to last person of a joint ownership expires, then his share passes to the remaining owners of the property. A joint tenancy in which the single owner remains after the death of one owner, then tenancy converts to tenancy in common. Under tenancy in common or TIC as it is generally known as the share of the property can be transferred to other people through a will. There are ways by which one can convert shares in a joint tenancy to TIC , allowing inheritance by heirs.
The above paragraph showcases that if you have property in joint tenancy and want it to be inherited, then you must get them converted to TIC. This also known as unilateral conversion.
For jointly owned property
Before getting into a joint tenancy, do consider what you are getting into. Joint tenancy has its own set of virtues. Consulting a real estate attorney before entering a joint ownership may seem a prudent step.
Joint tenancy has its own set of plus points. However, its best you think wisely before choosing such type of arrangement with your partner. It comes with its own set of vices and virtues.