What Happens to a Jointly Owned Property if One Owner Dies?

Jointly owned property is a common arrangement in the UK, especially for couples or family members. However, understanding what happens to the property when one owner passes away is essential for estate planning and managing your affairs after a loss. At Black Country Funeral Services, we aim to provide helpful guidance to support families during difficult times.

Here’s a clear explanation of how joint property ownership is handled in the UK when one owner dies.

Types of Joint Property Ownership in the UK

The outcome for a jointly owned property depends on the type of ownership agreement in place. There are two main types:

1. Joint Tenancy

• Key Feature: Each owner has an equal share of the property.
• What Happens Upon Death: The deceased’s share automatically passes to the surviving owner(s) through the right of survivorship, regardless of what their will states.
• No Probate Required: Since the property passes automatically, it does not form part of the deceased’s estate.

2. Tenancy in Common

• Key Feature: Each owner owns a specific share of the property, which can be unequal.
• What Happens Upon Death: The deceased’s share becomes part of their estate and is distributed according to their will or intestacy rules if no will exists.
• Probate Required: The executor of the will manages the transfer of ownership.

Factors That Can Influence Property Ownership After Death

1. The Deceased’s Will

• If the property is held as tenants in common, the deceased can specify in their will who inherits their share.
• If there is no will, the rules of intestacy apply.

2. Mortgage or Debt on the Property

• If there is an outstanding mortgage, the surviving owner(s) may need to take on the deceased’s share of the debt or sell the property to repay it.

3. Inheritance Tax

• The deceased’s share of the property may be subject to inheritance tax, depending on the value of their estate and their relationship to the beneficiary.