When a loved one passes away, their property must go through the probate process. This involves legally transferring ownership of their assets. Jointly owned property can complicate this process. Understanding what happens to such property can help manage expectations during probate.
Types of joint ownership
Jointly owned property comes in different forms. The two most common are joint tenancy with right of survivorship and tenancy in common. Joint tenancy allows property to transfer directly to the surviving owner. Tenancy in common, however, means that the deceased owner’s share must go through probate.
Joint tenancy with right of survivorship
In joint tenancy with right of survivorship, when one owner dies, the other owner automatically inherits the property. Probate is not necessary for this type of ownership. This process is straightforward and typically faster, allowing the surviving joint owner to gain full ownership of the asset without delay.
Tenancy in common
Tenancy in common differs from joint tenancy because each owner holds a specific share of the property. If one owner passes away, their share becomes part of their estate. This means the share must go through probate before it can be transferred to the rightful heirs. This process can take time, depending on the complexity of the estate.
Potential complications
Jointly owned property can present challenges during probate. Disputes may arise if other heirs disagree with the automatic transfer of property in joint tenancy. Additionally, tenancy in common can involve delays if the probate process is lengthy. Consulting a probate attorney may help avoid misunderstandings and ensure a smooth transfer of ownership.
Proper estate planning can simplify the process of handling jointly owned property. Understanding the type of joint ownership is crucial. Planning ahead can help ensure a seamless transition of assets, minimizing the stress on surviving owners and heirs.