When purchasing property with another person, you can choose to register ownership as either joint tenants or tenants-in-common.

Each option has distinct advantages and implications for your estate planning.

Joint Tenancy

One of the primary benefits of joint tenancy is that if one owner passes away, their share of the property automatically transfers to the surviving owner. This makes joint tenancy a popular choice among spouses, as it allows the property to be transferred seamlessly without the need for probate, thereby avoiding probate fees.

Tenants-in-Common

On the other hand, tenants-in-common ownership means that if one owner dies, their interest in the property is passed on according to their will or estate plan, rather than automatically to the surviving owner. This arrangement is often preferred by unrelated individuals purchasing investment property together. It ensures that each owner’s share can be inherited by their respective beneficiaries, such as spouses or children.

Choosing the best type of ownership depends on various factors, including your relationship with the co-owner and your long-term plans for the property. It’s crucial to consider these factors carefully to structure your purchase in a way that best supports your future goals.

If you need assistance or have any questions about which option is right for you, our  Real Estate Law team is here to help.