Land Joint Tenants 0r Instructions In Will - Which Takes Precedence?

woodbine66

Mrs Smith has two sons, Bill and Jim. She owns a piece of land as joint tenants with Bill. In her will it states that her estate is to be divided 50/50 equally between Bill and Jim. It doesn't mention the land specifically.

What happens to the piece of land when Mrs Smith dies? Does Mrs Smith's half of the land automatically pass to Bill, and the rest of her estate split 50/50 between Bill and Jim? Or because the will says that her estate is to be split 50/50, does Bill get a 75% share of the land  (ie. his half plus half of his mother's share) and Jim gets a 25% share - with the rest of the estate being divided equally between them?

Thanks for any advice - this is a situation in my family that may arise in the future.

Tigsteroonie

The land does not form part of Mrs Smith's estate, Bill keeps the land as he is the remaining owner. Everything else she has is 'estate' and is split 50:50.

jonesMUFCforever

IMO and I am not a lawyer - if the land is already in name of Mrs Smith and Bill as joint tenants then the land would automatically go to Bill.

Flugelhorn

agree with the others - it all goes to Bill 
As it is Mrs Smith doesn't own half  the land they both own all of it, so when she dies the only remaining owner keeps the land. If they want to change this they need to own it as tenants in common

woodbine66

Thanks to all for your replies. Really appreciated. Confirms what I thought.

Sea_Shell

I'm guessing 'Jim' isn't happy?!

ETA Just realised it's a "future" issue.

What does Mrs Smith want to happen?    Does she want Jim to also inherit part of the land?

Marcon

woodbine66 said:

Mrs Smith has two sons, Bill and Jim. She owns a piece of land as joint tenants with Bill. In her will it states that her estate is to be divided 50/50 equally between Bill and Jim. It doesn't mention the land specifically.

What happens to the piece of land when Mrs Smith dies? Does Mrs Smith's half of the land automatically pass to Bill, and the rest of her estate split 50/50 between Bill and Jim? Or because the will says that her estate is to be split 50/50, does Bill get a 75% share of the land  (ie. his half plus half of his mother's share) and Jim gets a 25% share - with the rest of the estate being divided equally between them?

Thanks for any advice - this is a situation in my family that may arise in the future.

Perhaps make sure all parties understand what will happen. If that isn't what mum actually wants to happen, change the ownership from joint tenants to tenants in common - easy to do and Bill doesn't have to agree.

unforeseen

But Jim still won't be happy as he will end up with only a 25% share of the house while Bill will have 75%.

Tigsteroonie

unforeseen said:

But Jim still won't be happy as he will end up with only a 25% share of the house while Bill will have 75%.

What house? The OP is about a piece of land,not a house. 

Also nobody gets a 25% or a 75% share. Bill continues to own the land, he's just not a joint owner any more. Jim and Bill get to share whatever else there is - money, house, shares,who knows? - on a 50:50 basis.

pphillips

unforeseen said:

But Jim still won't be happy as he will end up with only a 25% share of the house while Bill will have 75%.

Once the beneficial joint ownership has been severed, Mrs Smith can choose who she leaves her share of the land to by making a new will.

xylophone

The OP might wish to read the guidance on valuation of jointly owned assets (land in this case) for IHT purposes - see  Notes to IHT 404.