Property ownership – joint ownership or joint tenancy

fannyanna

My Husband and I need to consider how we’re going to own a property that we’re about to purchase. Our first property was owned joint ownership but I’m wondering whether joint tenancy will be more appropriate this time round. It’s likely that I’ll be contributing more to the mortgage although I’m not too bothered about that. The main consideration is that the majority of our deposit is a gift from my parents.

Now I can’t imagine us ever divorcing but I suppose it is prudent to consider this happening. If we had joint tenancy I would have a better chance of “retrieving” the deposit.

As I don’t see us divorcing the main scenario that I’m considering is me dying. The bit that complicates things is the fact that my Husband has two children. Now at the risk of being flamed I feel it’s important to say that these two children are not fully integrated into our lives and it is on this basis that I feel that I do not want my parents gift to eventually go to these children. I’m sorry. I know this is an emotive subject but I don’t want to get into the morals of this. I’m just looking at this from a financial planning point of view and any advice would be greatly received.


I’m trying to think through the possibilities of what would happen if I were to die.

• If my Husband and I have our own children then I think (and my parents would agree) my Husband should get everything to provide for our children.
• If we don’t have children I think the gifted money should work its way back to my family (either parents or siblings) rather than my step children. But at the same time I wouldn’t want to disadvantage my Husband so I’m not really sure how that would work in principle. It would obviously involve a Declaration of Trust and a couple of wills but I’m just trying to get my head around everything before I approach my solicitor.

Sorry if I inadvertently upset or offend anyone with my question.

EDIT: I don't mean joint tenancy. I mean tenants in common.

wymondham

What does your husband think about your plans?

fannyanna

wymondham wrote: »

What does your husband think about your plans?

He's a bit confused - like me.

He has no problems with regards to the gifted money not going to his biological children.

We are both happy that any other money gets left to them. The way I see it is that other than this gifted money everything else is split equally and can be distributed as either of us feel fit.

wymondham

Can you buy in joint ownership and just focus on a good will ??

fannyanna

wymondham wrote: »

Can you buy in joint ownership and just focus on a good will ??

Yes, and in honesty that is probably what we will do.

But in order to reach that point I am just trying to understand the options. As I see them they are as follows:

Divorce

Joint Ownership - Property divided equally. In effect we’ll both have an equal share of the gifted deposit.

Tenancy in Common - The gifted deposit would be returned to me and then the rest of the property would be divided equally.


Death

Joint ownership - My share would automatically transfer over to my Husband. I would be unable to leave any share (the gifted deposit) of the property to my family.

Tenancy in Common - My share would not automatically be transferred to my Husband. My will would stipulate who would receive my share (in reality my Husband other than the gifted deposit – unless we have children together).


It's the practicalities of the death / tenancy in common option that I just don't understand.

skeato

As I understand it T I C simply means that you have an agreement that you share in the ownership an asset 50/50 60/40 or whatever
If this is written into a will you can leave your share to whoever you want.
It always raise the question that the remaining partner loses part of this asset, if it is your home you may be uncomfortable with half your home being owned by someone outside the family

I am not an expert so pro advice is vital

pmlindyloo

With the best will in the world from everyone on here you need to seek professional legal advice.

Everything that you want to happen can be sorted out by having the correct ownership of the house and making wills to fit in with every eventuality.

fannyanna

Thanks for the additional input.

I'm now thinking we just own the property jointly and create a will which says that on our death the gifted money needs to be repaid to my family before our estate is distributed more widely.

Either way I've arranged an appointment with our solicitor to sit down and discuss our options.

xylophone

http://www.primewills.co.uk/will_writers_cambridge.htm
Scroll down to "Life interest of residue clause" and to "Right of Residence clause" - might be worth a read before you see your solicitor.
See also "deed of severance".

skeato

Be careful with " joint ownership" bit ' all assets jointly owned pass in their entirety to the other joint owner, I think, but check it out

Bluemeanie_2

Hi Fannyanna. The reason I would never go for joint tenants is to do with inheritance.

If I died tomorrow and my house automatically passed to my Husband as it would with JT, he could remarry, die intestate, then his new wife would inherit (we live in a low value area so it is likely she would get the whole lot), then she could leave the house (or any house bought with my/our money) to whom she liked. Including any children she has and exclude my stepkids/mine (if I have any).

That's why I wouldn't go for JT's. Because some random woman's children could end up with my house leaving mine/stepkids excluded.