Joint Tenancy and Declaration of Trusts

Joint Tenants

If you are buying property with someone else, whether they are your partner, friend or if it is an investment, you will need to consider the implications of joint ownership.

Your property can be held as either Joint Tenants or Tenants in Common. If the property is held as Joint Tenants, you do not own a specific share in the property and if one of you dies the property automatically passes to the surviving owner or owners, regardless of what is set out in your Will. On a sale it is assumed that the property is held equally and that the proceeds of sale will be shared equally.

However, if the property is held as Tenants in Common, each owner has a specific share and interest in the property and can deal with that share as their own. That share can be sold or transferred and gifted to someone by your Will. On the death of one of you, your share in the property will pass under your Will, or, if you have not made a Will, under the Intestacy Rules to your next of kin.

Declaration of Trust

If there are more than two owners, unequal shares or different contributions to the purchase of the property, we can prepare a Declaration of Trust setting out these arrangements to avoid any disagreements in the future.

Declarations of Trust can be as simple or complicated as required and are comparatively inexpensive, especially compared to the cost involved in resolving matters in the future and any losses you may incur.

It is possible for one joint owner to convert the ownership from a joint tenancy to a tenancy in common, but the consent of both owners is necessary to convert a tenancy in common to a joint tenancy.

When dealing with the implications of joint ownership and Declarations of Trust, it is an ideal time to consider making or updating your Will and Tax Planning. Seymours can provide assistance with this, please ask to be put in contact with a member of our Private Client Team.