When you co-own realty, the way you hold title controls what occurs at death-often more than your will. This short article strolls you through the legal and practical differences in between occupants in typical (TIC) and joint occupancy with right of survivorship (JTWROS), what to anticipate when one owner passes away, and how to prepare with self-confidence. Contact us by either using the online kind or calling us directly at 414-253-8500 for legal support.

Why Title Matters More Than The Majority Of People Realize

Property does not immediately follow the instructions in a will. Instead, the deed's vesting language-how the owners are listed-can send out the residential or commercial property on very various paths at death. Simply put:

- Joint Tenancy (JTWROS): the departed owner's share usually passes instantly to the surviving joint owner(s).

- Tenants in Common (TIC): the deceased owner's share does not pass to co-owners immediately; it usually passes under the will or by intestacy and may require probate.

Bottom line: Your deed can override your will when it pertains to who receives your property.

If you're new to probate and non-probate transfers, you might find this summary handy: What Is Probate and How Can It Be Avoided.

The Legal Definitions-Plain English

Tenants in Common (TIC)

- Each owner holds a separate, divisible interest (which can be equivalent or unequal).

- An owner can sell, gift, or bequeath their share.

- Upon death, the owner's share goes to their heirs/beneficiaries, not immediately to the other co-owners.

Joint Tenancy with Right of Survivorship (JTWROS)

- Co-owners hold one unified interest with equal shares.

- When one owner dies, their interest disappears into the survivors' interests by operation of law.

- The residential or commercial property typically prevents probate for that deceased owner.

Note: Some jurisdictions likewise recognize tenancy by the totality for married spouses. Its survivorship feature is similar to joint tenancy, however it's an unique type of ownership with lender and transfer nuances. If you're not sure how your deed is entitled, have an attorney review the precise language on your taped deed.

Tenants in Common vs. Joint Tenancy: What Happens When One Owner Dies

If the deceased was a Joint Tenant (JTWROS)

1. Automatic transfer to surviving owner(s). The deceased owner's interest goes by survivorship, not by will.

2. Paperwork is still required. Although probate is often prevented, you'll typically require to:

- Record an affidavit of survivorship (or comparable type) and

- Record a qualified death certificate with the county land records.

3. Title is upgraded to show the surviving owner(s) as the existing owner(s).

Practical notes:

- Mortgages and liens: Survivorship does not erase legitimate liens. The loan and any taped encumbrances remain attached to the residential or commercial property.

- Residential or commercial property taxes and insurance: Notify the tax authority and insurer quickly to keep billing and coverage present.

- Simultaneous death or common disaster: If owners die close in time and the deed doesn't deal with order of death, default guidelines can use. This can complicate who receives the residential or commercial property.

- Unintended disinheritance: JTWROS can accidentally disinherit children from a previous relationship if a spouse or partner outlives you and then leaves the residential or commercial property in other places. If that's a concern, a trust can provide guardrails. For a much deeper dive, see: Is It Better to Use Joint Ownership or a Trust to Pass Down a Home?.

When to seek legal aid rapidly: If another joint tenant recently altered title (e.g., taped a deed severing the joint tenancy) or if there are creditor concerns, get suggestions immediately to prevent losing survivorship rights or to browse claims.

If the deceased was an Occupant in Common (TIC)

What normally occurs:

1. No automatic survivorship. The decedent's share comes from their estate.

2. Will or intestacy controls. The share passes under the will, or if there's no will, under intestacy (the default inheritance guidelines).

3. Probate may be needed. Realty is typically a probate property unless other preparation is in location (for example, the share is kept in a trust).

The normal actions:

- The individual representative (executor) might require to:

- Open an estate and acquire authority (letters).

- Manage or offer the decedent's fractional interest.

- Distribute the share (or sale profits) to beneficiaries.

- Record an individual agent's deed if a transfer takes place.

Co-owner dynamics:

- Remaining TIC owners keep their shares. They don't immediately receive the decedent's portion.

- If the decedent's recipients do not desire to co-own, they (or the administrator) might request a sale or, as a last option, pursue a partition action to force a sale if no contract can be reached.

- Co-owners must think about a co-ownership contract to set rules for costs, buyouts, and sale treatments while an estate is being settled.

Benefits and drawbacks at a Glance (Narrative)

Joint Tenancy (JTWROS) Strengths

- Faster shift at death, often no probate for the residential or commercial property.

- Simpler for spouses/partners who want the survivor to own the residential or commercial property outright.

- May decrease administrative hold-ups if the survivor needs to re-finance or sell.

Joint Tenancy (JTWROS) Risks

- Can disinherit children or desired beneficiaries if the survivor later on alters their own estate strategy.

- Severance threat: A joint renter can in some cases unilaterally sever the joint occupancy, converting it to TIC-undercutting survivorship.

- Creditor direct exposure: A creditor of one joint occupant might make complex refinancing or title.

Tenants in Common (TIC) Strengths

- Control and versatility: You can leave your share to your selected beneficiaries.

- Unequal ownership enabled, matching contributions or investment portions.

- Better matched for non-spouse co-investors and blended-family preparation.

Tenants in Common (TIC) Risks

- Probate direct exposure: The share might require probate unless it's currently in a trust or transferred via a non-probate approach.

- Management friction: Disagreements over repairs, rent, or sale are more common without a co-ownership contract.

- Liquidity obstacles: Selling a fractional interest can be challenging and may require court participation.

What Your Will, Trust, and Beneficiary Choices Can-and Can't-Do

- A will controls probate properties (like a TIC share that isn't otherwise prepared). If you do not have one, consider our summary of Wills.

- A revocable living trust can hold title to your residential or commercial property and avoid probate for that property if appropriately funded. It also allows in-depth guidelines for who uses the residential or commercial property and when after your death.

- Beneficiary designations don't usually govern property, however they matter for bank accounts and retirement funds that may be needed to pay bring costs or buy out co-owners. See our page on Beneficiary Designations.

- Deed-based tools (e.g., transfer-on-death deeds, where readily available) can move real residential or commercial property outside probate while protecting your control throughout life. The exact rules are jurisdiction-specific and must be executed precisely.

Common Post-Death Scenarios-And How Title Drives the Outcome

1. Married couple on the home in JTWROS; one spouse passes away: The survivor records the affidavit and death certificate. Title vests totally in the survivor. Later estate distribution takes place per the survivor's plan-not the decedent's-unless other planning was done.

2. Adult brother or sisters own a rental as TIC; one brother or sister dies: The decedent's will leaves their share to their kids. An estate is opened, the administrator handles the share, and the successors either keep co-owning or work out a buyout/sale.

3. Unmarried partners in JTWROS but later on separate: One records a deed severing the joint tenancy (if allowed), converting to TIC. If one dies after severance, survivorship is gone; the deceased's share goes to their estate.

4. One owner has considerable individual debts: Whether JTWROS or TIC, taped liens can cloud title or follow sale proceeds. Survivorship doesn't erase valid encumbrances. Planning may consist of refinancing, pay-downs, or holding the residential or commercial property in a trust to manage distributions.

Step-By-Step: What Survivors Should Do Next

If the residential or commercial property was held as Joint Tenants (JTWROS)

1. Order multiple certified death certificates. You'll generally require a minimum of 2-3.

2. Record an affidavit of survivorship plus a death certificate in the county's land records to show the survivor's ownership of record.

3. Notify the lender, insurance provider, and tax authority. Keep payments existing; demand billing updates and verify coverage.

4. Update the estate plan of the survivor. Now that title is exclusively in the survivor's name, confirm who eventually inherits. For wider context on entitling and deeds, see our summary on entitling and deeds.

5. Look for liens or home equity lines. Survivorship won't remove recorded encumbrances.

If the residential or commercial property was held as Tenants in Common (TIC)

1. Confirm the individual representative. If there's a will, the nominated agent petitions to be designated; if not, an interested successor can petition under intestacy.

2. Open the estate (if required) so the agent can act.

3. Maintain the residential or commercial property. Pay taxes, insurance, HOA charges, and vital repair work; track expenses for later accounting.

4. Decide whether to keep, buy out, or offer. Co-owners can buy the decedent's share from the estate, hold the residential or commercial property together, or list it for sale. If consensus stops working, a partition action may be the last hope.

5. Transfer title or profits. The representative signs a personal agent's deed, or distributes sale proceeds to recipients per the will or intestacy.

Practical idea: Keep meticulous records of bring costs and repairs during estate administration-these may be reimbursable and can matter for tax basis.

Taxes at Death: Basis, Gains, and Timing

- Income tax basis: A decedent's share generally receives a step-up (or step-down) in basis to the reasonable market price at death.

- In JTWROS, the step-up often applies to the departed owner's portion.

- In TIC, the step-up applies to the decedent's fractional interest that goes through the estate.

Capital gains: If the survivor later offers, gains are computed from the adjusted basis (including any step-up) minus selling costs.

Estate or estate tax: Thresholds and guidelines are jurisdiction-specific and change over time. Get customized recommendations before selling or retitling.

Residential or commercial property tax reassessment: Some jurisdictions reassess on transfer; others provide exemptions for certain transfers. Verify locally before you act.

For more comprehensive preparation beyond probate, evaluate our comparison of revocable living trusts vs. wills.

Reading Your Deed: How to Know What You Have

Look for exact vesting language on the most recent taped deed:

- "As joint tenants", often explicitly "with right of survivorship."

- "As tenants in common."

- "Husband and spouse as occupants by the totality" (where acknowledged).

If the deed is silent, default statutes might apply-and silence can set off conflicts. When in doubt, order a title search and have a lawyer evaluation. If you need to alter how it's held, that normally needs tape-recording a brand-new deed (and, if appropriate, lending institution consent).

Changing Course: Can You Switch Between TIC and JTWROS?

- From TIC to JTWROS: Co-owners can sign and tape a new deed that expressly develops survivorship rights. Title insurers often prefer a fresh instrument to prevent ambiguity.

- From JTWROS to TIC: In numerous locations, one owner can sever the joint tenancy-intentionally or accidentally-by communicating their interest (even to themselves) into TIC type. This can beat survivorship.

- After a death: Once a joint occupant dies, survivorship relates back to the original deed. You can't "undo" survivorship retroactively; you 'd require separate preparation (e.g., trusts) beforehand.

For owners assessing deed-based choices to prevent probate, see our overview on transferring real residential or commercial property without probate and our conversation of life estate deeds.

Planning Solutions That Balance Control and Simplicity

- Revocable living trust: Place the residential or commercial property in a trust to prevent probate, keep control throughout life, and direct who benefits after death with guardrails (e.g., kids from previous relationships, usage rights, sale timing).

- Co-ownership agreement: For TIC owners, set written guidelines for costs, repair work, buyouts, sale approvals, and disagreement resolution.

- Transfer-on-death (TOD) deed (where readily available): Lets you retain full control during life while naming a beneficiary for the residential or commercial property at death. Execution and recording information are vital.

- Insurance evaluation: Ensure house owner's protection and any landlord/rental riders match truth. Update called insureds after death.

- Liquidity preparation: Keep cash or a designated account to cover taxes, insurance, and urgent repairs while documents process.

Warning That Call for Prompt Legal Advice

- Ambiguous or conflicting deeds (e.g., prior conveyances using various vesting language).

- Unclear marital status or common-law marital relationship questions sometimes of purchase.

- Recent quitclaim deeds that may have severed a joint occupancy.

- Creditor claims, liens, or HOA violations making complex transfer or sale.

- Heirs contesting a will or asserting rights that encounter survivorship.

- Out-of-state residential or commercial property or residential or commercial property in numerous counties requiring collaborated filings.

Document Checklist (Save This)

- Certified death certificate(s)

- Affidavit of survivorship (for JTWROS)

- Letters appointing the personal agent (for TIC in probate)

- Personal representative's deed (if the estate conveys)

- Latest taped deed and title report

- Mortgage declarations, residential or commercial property tax costs, insurance statements

- HOA/condo statements and bylaws (if relevant)

- Lien reward or subordination letters (if needed)

- Closing statement if selling

When Joint Tenancy Makes Sense-And When It Doesn't

Often sensible for:

- Couples who want the survivor to own the home instantly, with minimal red tape.

- Co-owners who are lined up on supreme personality and have collaborated estate strategies.

Often not perfect for:

- Blended households where you wish to protect kids from previous relationships.

- Investment partners who require clear exit/buyout mechanics.

- Situations with unequal contributions or different time horizons.

If you're uncertain which path fits, a quick strategy session with an experienced realty and estate preparation lawyer can clarify trade-offs and established a future-proof plan.

Contact a Lawyer for Tenants in Common vs. Joint Tenancy

Have concerns about Tenants in Common vs. Joint Tenancy or what occurs when one owner passes away? We can assist you comprehend your deed, finish the essential filings, and develop a plan that stabilizes control, survivorship, and beneficiary protections. Contact Heritage Law Office by using our online type or calling 414-253-8500 to speak with a lawyer about your situation.

1. What is the primary difference in between Tenants in Common vs. Joint Tenancy when one owner passes away?

In joint tenancy with right of survivorship (JTWROS), the departed owner's interest generally moves instantly to the surviving owner(s) by operation of law. In renters in typical (TIC), there is no survivorship: the deceased owner's share passes under their will or by intestacy and might require probate.

2. Does joint tenancy constantly avoid probate for the residential or commercial property?

Often, yes-for that deceased owner's interest-because the transfer occurs by survivorship, not through the estate. However, documentation is still required, such as recording an affidavit of survivorship and a death certificate. Existing mortgages or liens stay; survivorship does not erase encumbrances.

3. Can a joint occupancy be altered to tenants in common without everybody concurring?

In many jurisdictions, one joint occupant can sever the joint tenancy unilaterally (for instance, by communicating their interest to themselves as TIC), which eliminates survivorship going forward. The precise approach and effect depend on local law and the deed language, so it's sensible to seek advice from an experienced attorney before making changes.

4. Do taxes work differently for JTWROS vs. TIC when an owner passes away?

Generally, the departed owner's fractional interest receives a step-up (or step-down) in earnings tax basis to reasonable market price at death. In JTWROS, the step-up typically uses to the decedent's part; in TIC, it uses to the decedent's fractional share that goes through the estate. Capital gains on a later sale are computed from the adjusted basis, less selling costs.

5. What files should survivors collect after a co-owner dies?

At minimum: qualified death certificates, the most current deed, any mortgage declarations, residential or commercial property tax and insurance coverage files, and-depending on title-either an affidavit of survivorship (JTWROS) or letters of authority and a personal representative's deed (TIC/probate). Keeping arranged records aids with title updates, refinancing, or a future sale.