Wills -tenants in common

[Park 10]

been advised that tenants in common wills are better than property trust wills - can anyone please explain it in very simple terms before we commit? when do our children actually own the 50% thanks

[GoGo_dancer 10]

Joint tenants - the property is owned as a whole entity - if one of you dies, the entire property passes straight to the surviving spouse.

 

Tenants in common - the property is owned in equal shares, so 50/50. If one spouse dies they can leave their share of the property to the surviving spouse, or to a child and give the surviving spouse a 'life interest' which means they can live their until they die.

 

Either way it's best to get proper legal advice so you understand the full impact of your choices and find out how to ensure your wishes are met after you die.

[999tigger 10]

You should take legal advice or maybe see if Age concern to see if they have anything on it. You need to understand what you are agreeing to and it does what you want it to.

 

A property trust will is designed specifically for people worried that one of them may need long term care. If one party dies, then instead of it going automatically to the other , its put into trust. The surviving party gets a life interest, which means they can still live there. The half share in trust is exempt from being included for care cost assessment. When the other party dies, then the share goes to the beneficiaries i.e children.

 

 

Id have to see the document, but if you were tenants in common then the property would pass as you said in the will rather than automatically to the other joint tenant. There are tax implications to this.

 

Ownership by your kids would be when the will says. You may set it up so that the money goes into trust anyway and they get it at a later date.

 

The difference with property protection is that your wife gets to live in the property during her lifetime and that right is protected.

 

GET LEGAL ADVICE

[Jeffrey Shaw 90]

Joint tenants - the property is owned as a whole entity - if one of you dies, the entire property passes straight to the surviving spouse.

 

Tenants in common - the property is owned in equal shares, so 50/50. If one spouse dies they can leave their share of the property to the surviving spouse, or to a child and give the surviving spouse a 'life interest' which means they can live their until they die.

 

Either way it's best to get proper legal advice so you understand the full impact of your choices and find out how to ensure your wishes are met after you die.

Yes. To understand, consider a parallel example.

 

H and W buy some shares on Stock Market.

1. They buy 200 shares. They have one certificate which shows them both as shareholders. One holding, with two owners.

OR

2. They buy 200 shares in total: but H buys 100 shares and W buys 100 shares. Each has a certificate showing him or her as sole shareholder. Two holdings, each with one owner.

 

Case 1 is akin to 'beneficial joint tenants'.

Case 2 is akin to 'beneficial tenants in common'.

 

(Except that, for land and estates/interests in it, multiple owners are ALWAYS joint owners.

There is ALWAYS a Trust, either express or implied. It's only the beneficial- 'equitable'- interest that can be joint or not.)

[Park 10]

many thanks all. we have taken legal advice and have instructed a solicitor to draft papers at the same time as power of attorney. think that that this option will become more common in future. was advised that property trust is not a good idea. incidentally i am the wife instigating this as my dad was rather upset when I suggested this after his stroke at 80 ish but my sister was very grateful in the long run for her power of attorney as she lived near and I did not when my dad died and mum had to go into a home. i am now trying to think of my children well in advance.

[sgtkate 10]

many thanks all. we have taken legal advice and have instructed a solicitor to draft papers at the same time as power of attorney. think that that this option will become more common in future. was advised that property trust is not a good idea. incidentally i am the wife instigating this as my dad was rather upset when I suggested this after his stroke at 80 ish but my sister was very grateful in the long run for her power of attorney as she lived near and I did not when my dad died and mum had to go into a home. i am now trying to think of my children well in advance.

 

Can't offer property advice, but having seen the mess my parents inherited when my gran suffered a stroke and lost her mental capacity and they had to try to sort her estate out without power of attorney, I'd say this is a good thing to get if you have similar concerns.

[999tigger 10]

many thanks all. we have taken legal advice and have instructed a solicitor to draft papers at the same time as power of attorney. think that that this option will become more common in future. was advised that property trust is not a good idea. incidentally i am the wife instigating this as my dad was rather upset when I suggested this after his stroke at 80 ish but my sister was very grateful in the long run for her power of attorney as she lived near and I did not when my dad died and mum had to go into a home. i am now trying to think of my children well in advance.

 

Good you should always get legal advice. The things you cna never be sure off on the internet is who you are speaking to. One major caveat and the reason wht its best to get an interview is a lwayer will wnat to ask you questions and see all relevant documents as they could change the advice given substantially. Clients also arent the most reliable and sure of what they want or what is relevant. Im lad you got advice and hopefully it gives you peace of mind now that you have sorted your affairs out.

[Park 10]

Our updated will includes this  Can someone, legal?  please give me a simple explanation of this for my children to understand.  

[Obelix 11]

This link explains it fairly well

 

https://www.co-oplegalservices.co.uk/conveyancing-services/joint-tenancy-tenancy-in-common/

[Park 10]

thanks for your trouble    I have printed stuff out to try and digest

[Jeffrey Shaw 90]

On 24/10/2019 at 11:07, Obelix said:

This link explains it fairly well

 

https://www.co-oplegalservices.co.uk/conveyancing-services/joint-tenancy-tenancy-in-common/

Yes, although it does not make clear one essential fact.

The law was changed in about 1925 so that LEGAL ownership held by > 1 person is inescapably JOINT.

It creates an implied trust of land, no matter whether the parties know about it or not (and no matter whether they want it or not!)

 

The options of BENEFICIAL JOINT TENANCY (BJT) and BENEFICIAL TENANCY IN COMMON (TIC) there fore apply only to the equitable ownership (= the beneficiaries' under that trust).

 

The only difference at HM Land Registry is that joint proprietors have to register a 'form A' Restriction if they're not beneficial joint tenants.

 

It's possible to switch from BJT to TIC (by 'Notice of Severance').

It's also possible to switch from TIC to BJT, although this is more complex and necessitates a Deed.

Edited October 29, 2019 by Jeffrey Shaw

[topflat29 10]

withdrawn .

Edited November 20, 2019 by topflat29
answer already posted in ~2.