Joint tenants and tenants in common: the differences

These are the two ways in which the deceased may have held jointly-owned assets.

Usually, the terms apply only to housess, other land and properties, bank and building society accounts and stocks and shares.

Of these, houses and other properties are commonly held as either tenants in common or joint tenants, whereas stocks, shares, bank and building society accounts are (if joint) almost always held as joint tenants.

These terms have nothing to do with leases and landlords.

Joint tenants

If the deceased held an asset as joint tenants:

1. The deceased owned the asset with one or more joint owners;
2. The deceased’s share passes automatically to the survivor;
3. The deceased’s share does not pass according to a will or intestacy;
4. A grant of representation is not required to deal with this particular asset;
5. The value of the deceased’s share is usually determined by splitting the value of the asset equally; and
6. The value of the deceased’s share is added to the value of the estate for inheritance tax.

Tenants in common

If the deceased held an asset as tenants in common:

1. The deceased owned the asset with one or more joint owners;
2. The deceased’s share passes according to a will or intestacy;
3. The deceased’s share does not pass automatically to the survivor;
4. A grant of representation is required to deal with this particular asset;
5. The value of the deceased’s share is usually determined by splitting the value of the asset equally; and
6. The value of the deceased’s share is added to the value of the estate for inheritance tax.

"Survivorship"

Perhaps the most important of the differences above is that an asset held as joint tenants will pass automatically to the surviving owner(s), not according to the deceased’s will or intestacy.

This rule is called “survivorship”, and it applies at the date of death. This means that a sole surviving joint tenant will become sole owner automatically on the death of the other joint tenant.

A grant of representation is not required to deal with such assets. Nevertheless, it is usually necessary to contact the bank, Land Registry, etc, to advise them of the death (and you may be required to submit a form).