Joint tenants or tenants in common?

ramalamadingdong

About to buy a house with my partner.
We are engaged and will marry (hopefully) within the next year.
I have two children from a previous relationship, partner has none.
Joint tenants or tenants in common?
Or does this matter? Do we just draw up what we want to happen in a will?
Thanks in advance.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6659919/joint-tenants-or-tenants-in-common

It matters…

Legally with a Joint Tenancy you each own 100% of the property, when one of you dies the remaining tenant(s) continue to own 100% and so your will is irrelevant as it doesnt form part of your estate. If all the tenants die at the same time then it is assumed that the youngest died last and it will follow their will or intestate rules.

With a Tenants in Common you own an equal share each, unless there is a deed agreeing a different split. In the event of your death then your percentage of the property follows the instructions of your will or intestate laws in the absence of a will.

If you want it all to go to them then not much difference, if you want your share to go to your kids etc then you need a tenants in common arrangement.

Keep_pedalling

You cannot leave a share of a house that it held as JT, so you risk your children inheriting nothing unless you own as TiC. To protect your partner you should also have a will in place with an immediate post death interest clause included.

While not married or in a civil partnership the other risk is an IHT liability should either of you meet an untimely end, so as you plan to marry don’t leave it too long.

ramalamadingdong

Thank you so much for your replies.

1. The deed you mention. Is that also known as the Declaration of Trust? If we contribute equal shares to the deposit, is the Declaration of Trust still needed to show what we want to happen if we split up, one of us dies, or one of us wants to sell? Or is the Declaration of Trust purely to show differing shares?

2. With TIC Is there anywhere else that it should be legally documented that should either of us die, the remaining person has the right to remain in the property until he or she dies or sells up?

3. Where would it have to be legally documented that if one of us dies then if the remaining person cannot move another partner into the house and that it would have to be sold and shares split?

p00hsticks

2 & 3. Would be specified in your wills. But note that if you marry after drawing up the will it becomes invalid, unless it specifically states that it is being made ' in contemplation of marriage'

ramalamadingdong

Thank you😃.

Revisiting point 1)..assuming the Deed previously mentioned is also known as the Declaration of Trust. If we are putting in 50/50 deposit do we need a Deed/Declaration of Trust for anything else? We accept we are jointly liable for the mortgage and neither one of us intends to spend more on the house than the other person, we will share the bills

Keep_pedalling

if one does not exist the the default is a 50/50 split.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81925661#Comment_81925661

 With TIC Is there anywhere else that it should be legally documented that should either of us die, the remaining person has the right to remain in the property until he or she dies or sells up?

As already mentioned in a previous post-

You cannot leave a share of a house that it held as JT, so you risk your children inheriting nothing unless you own as TiC. To protect your partner you should also have a will in place with an immediate post death interest clause included.

With an immediate post death interest trust clause in your will, then if you die your half of the house can be left to your children with a proviso that your partner can continue to live there until she dies.

Of course we do not know your full position, not even your age, so there may be other possible scenarios. For example if you had a lot of savings/investments/large pension pot etc. You could leave a cash sum to your children on your death, and leave the house 100% to your partner.

ramalamadingdong

Thank you 😊

We are both 52 and work full time (similar salaries)
We both have pensions (I'm not sure what is classed as significant) but only "rainy day" savings.