Estate Planning and Residential Property: What Happens After You Pass?
Who will inherit my home when I die?
The answer depends on how you own your home, whether it’s in your name alone or shared with someone else, and that makes a big difference when it comes to what happens next.
Sole Ownership
If your property is held in your sole name, it forms part of your estate when you die and will be inherited in accordance with the instructions in your Will. If you have not prepared a Will then the rules of intestacy step in and determines who inherits what, usually starting with your closest family members.
Joint Ownership
If you co-own your property with another person, the way you own it determines what happens to your share when you die. There are two types of joint ownership in England and Wales: beneficial joint tenants and tenants in common and each works very differently.
Beneficial Joint Tenants
If you and another person (say, a spouse or partner, for example) own your home as beneficial joint tenants, you both own the whole property together. There are no divisible shares. This arrangement triggers the rule of survivorship when the first owner dies. The deceased’s interest in the property automatically passes to the surviving owner, irrespective of what the deceased’s Will states or the rules of intestacy. This transfer happens outside of the probate process, making it a quicker and often more straightforward way of transferring property.
This form of ownership is common among married couples or civil partners and is often used where the intention is for the surviving partner to inherit the entire property.
Tenants in Common
Owning your property as tenants in common is different. In contrast, each person owns a distinct share in the property, which may or may not be equal. When an owner dies, their share of the property becomes part of their estate and is inherited in accordance with the terms of their Will or, if no Will exists, under the intestacy rules.
This arrangement is often used where co-owners want to retain control over who inherits their share, for example, when co-owning with friends, business partners, or in second marriages where individuals may wish their children from a previous relationship to inherit.
Planning Ahead
Knowing how your home is owned is more than just a legal technicality — it’s key to making sure your property is inherited in the way in which you intend. Additionally, making a valid Will and reviewing ownership arrangements periodically can provide peace of mind and reduce complications for your loved ones after your death. If you are unsure how your property is owned or would like to speak to a solicitor about updating your Will, please do not hesitate to contact Mogers Drewett as we would be pleased to assist you.
Charlotte Padfield – Trainee Solicitor
charlotte.padfield@mogersdrewett.com