When you co-own realty, the way you hold title manages what occurs at death-often more than your will. This short article walks you through the legal and useful distinctions between occupants in common (TIC) and joint occupancy with right of survivorship (JTWROS), what to anticipate when one owner passes away, and how to plan with self-confidence. Contact us by either utilizing the online kind or calling us straight at 414-253-8500 for legal assistance.

Why Title Matters More Than The Majority Of People Realize

Property does not automatically 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 different paths at death. In other words:

- Joint Tenancy (JTWROS): the departed owner's share normally passes immediately to the making it through joint owner(s).

- Tenants in Common (TIC): the departed owner's share does not pass to co-owners automatically; it normally passes under the will or by intestacy and might require probate.

Key point: Your deed can override your will when it pertains to who receives your realty.

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

The Legal Definitions-Plain English

Tenants in Common (TIC)

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

- An owner can offer, 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 equivalent shares.

- When one owner passes away, their interest vanishes into the survivors' interests by operation of law.

- The residential or commercial property generally avoids probate for that departed owner.

Note: Some jurisdictions also acknowledge occupancy by the totality for married spouses. Its survivorship feature is comparable to joint tenancy, however it's an unique form of ownership with lender and transfer nuances. If you're unsure how your deed is entitled, have a legal representative 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 making it through owner(s). The deceased owner's interest goes by survivorship, not by will.

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

- Record an affidavit of survivorship (or similar form) and

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

3. Title is updated to reveal the surviving owner(s) as the present owner(s).

Practical notes:

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

- Residential or commercial property taxes and insurance coverage: Notify the tax authority and insurer without delay to keep billing and coverage current.

- Simultaneous death or typical catastrophe: If owners die close in time and the deed does not address order of death, default rules can apply. This can complicate who receives the residential or commercial property.

- Unintended disinheritance: JTWROS can accidentally disinherit kids from a prior relationship if a partner or partner outlives you and then leaves the residential or commercial property elsewhere. 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 look for legal aid quickly: If another joint occupant just recently changed title (e.g., recorded a deed severing the joint occupancy) or if there are financial institution concerns, get advice promptly to prevent losing survivorship rights or to navigate claims.

If the deceased was a Tenant in Common (TIC)

What typically happens:

1. No automated 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 rules).

3. Probate may be required. Real estate is frequently a probate asset unless other preparation remains in place (for instance, the share is held in a trust).

The typical actions:

- The personal representative (administrator) may need to:

- Open an estate and acquire authority (letters).

- Manage or offer the decedent's fractional interest.

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

- Record a personal agent's deed if a transfer occurs.

Co-owner characteristics:

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

- If the decedent's recipients don't want to co-own, they (or the executor) may request a sale or, as a last resort, pursue a partition action to require a sale if no arrangement can be reached.

- Co-owners should consider a co-ownership agreement to set rules for expenses, buyouts, and sale procedures while an estate is being settled.

Benefits and drawbacks at a Look (Narrative)

Joint Tenancy (JTWROS) Strengths

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

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

- May lower administrative hold-ups if the survivor requires to re-finance or sell.

Joint Tenancy (JTWROS) Risks

- Can disinherit kids or intended beneficiaries if the survivor later on changes their own estate strategy.

- Severance risk: A joint tenant can often unilaterally sever the joint occupancy, converting it to TIC-undercutting survivorship.

- Creditor exposure: A creditor of one joint tenant may complicate refinancing or title.

Tenants in Common (TIC) Strengths

- Control and versatility: You can leave your share to your picked recipients.

- 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 may require probate unless it's already in a trust or moved through a non-probate method.

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

- Liquidity difficulties: Selling a fractional interest can be tough and may need court involvement.

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

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

- A revocable living trust can hold title to your residential or commercial property and prevent probate for that possession if appropriately funded. It also permits comprehensive guidelines for who utilizes the residential or commercial property and when after your death.

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

- Deed-based tools (e.g., transfer-on-death deeds, where offered) can move genuine residential or commercial property outside probate while preserving your control during life. The exact rules are jurisdiction-specific and must be performed exactly.

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

1. Couple on the home in JTWROS; one partner dies: The survivor records the affidavit and death certificate. Title vests completely in the survivor. Later estate distribution occurs per the survivor's plan-not the decedent's-unless other preparation was done.

2. Adult siblings own a rental as TIC; one sibling passes away: The decedent's will leaves their share to their kids. An estate is opened, the executor manages the share, and the successors either keep co-owning or work out a buyout/sale.

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

4. One owner has substantial individual financial obligations: Whether JTWROS or TIC, tape-recorded liens can cloud title or follow sale proceeds. Survivorship does not erase valid encumbrances. Planning may consist of refinancing, pay-downs, or holding the residential or commercial property in a trust to handle circulations.

Step-By-Step: What Survivors Should Do Next

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

1. Order several licensed death certificates. You'll generally require at least 2-3.

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

3. Notify the loan provider, insurance provider, and tax authority. Keep payments current; request billing updates and validate protection.

4. Update the estate plan of the survivor. Now that title is exclusively in the survivor's name, confirm who eventually acquires. For more comprehensive context on titling and deeds, see our overview on entitling and deeds.

5. Check for liens or home equity lines. Survivorship won't eliminate taped encumbrances.

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

1. Confirm the personal representative. If there's a will, the chosen agent petitions to be appointed; if not, an interested heir can petition under intestacy.

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

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

4. Decide whether to keep, buy out, or sell. Co-owners can purchase 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 might be the last hope.

5. Transfer title or proceeds. The agent signs an individual representative's deed, or disperses sale profits to recipients per the will or intestacy.

Practical pointer: Keep careful records of carrying costs and repair work throughout estate administration-these might 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 value at death.

- In JTWROS, the step-up frequently uses 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 sells, gains are determined from the adjusted basis (consisting of any step-up) minus selling costs.

Estate or estate tax: Thresholds and guidelines are jurisdiction-specific and change gradually. Get tailored advice before offering or retitling.

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

For broader preparation beyond probate, review our comparison of revocable living trusts vs. wills.

Reading Your Deed: How to Know What You Have

Try to find exact vesting language on the most recent taped deed:

- "As joint occupants", sometimes explicitly "with right of survivorship."

- "As occupants in typical."

- "Husband and other half as occupants by the totality" (where recognized).

If the deed is silent, default statutes may apply-and silence can trigger disputes. When in doubt, order a title search and have a lawyer review. If you require to change how it's held, that typically needs tape-recording a new deed (and, if relevant, lending institution permission).

Changing Course: Can You Switch Between TIC and JTWROS?

- From TIC to JTWROS: Co-owners can sign and tape a brand-new deed that specifically develops survivorship rights. Title insurance companies typically prefer a fresh instrument to avoid ambiguity.

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

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

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

Planning Solutions That Balance Control and Simplicity

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

- Co-ownership contract: For TIC owners, set composed rules for expenses, repairs, buyouts, sale approvals, and dispute resolution.

- Transfer-on-death (TOD) deed (where offered): Lets you maintain full control throughout life while calling a beneficiary for the residential or commercial property at death. Execution and recording information are critical.

- Insurance review: Ensure house owner's coverage and any landlord/rental riders match reality. Update called insureds after death.

- Liquidity preparation: Keep cash or a designated account to cover taxes, insurance, and immediate repair work while documents procedure.

Red Flags That Call for Prompt Legal Advice

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

- Unclear marital status or common-law marriage concerns at time of purchase.

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

- Creditor claims, liens, or HOA violations complicating transfer or sale.

- Heirs contesting a will or asserting rights that clash with survivorship.

- Out-of-state residential or commercial property or residential or commercial property in multiple counties needing coordinated filings.

Document Checklist (Save This)

- Certified death certificate(s)

- Affidavit of survivorship (for JTWROS)

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

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

- Latest recorded deed and title report

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

- HOA/condo declarations and bylaws (if applicable)

- Lien payoff or subordination letters (if required)

- Closing statement if selling

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

Often reasonable for:

- Couples who desire the survivor to own the home instantly, with minimal bureaucracy.

- Co-owners who are aligned on ultimate disposition and have actually collaborated estate plans.

Often not ideal for:

- Blended families where you desire to safeguard children from previous relationships.

- Investment partners who need clear exit/buyout mechanics.

- Situations with unequal contributions or various time horizons.

If you're uncertain which path fits, a quick method session with an experienced property and estate planning legal representative can clarify compromises and set up a future-proof plan.

Contact a Lawyer for Tenants in Common vs. Joint Tenancy

Have questions 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 construct a strategy that balances control, survivorship, and beneficiary protections. Contact Heritage Law Office by utilizing our online type or calling 414-253-8500 to talk with an attorney about your circumstance.

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

In joint occupancy with right of survivorship (JTWROS), the departed owner's interest typically transfers instantly to the enduring owner(s) by operation of law. In renters in common (TIC), there is no survivorship: the departed owner's share passes under their will or by intestacy and may require probate.

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

Often, yes-for that deceased owner's interest-because the transfer takes place by survivorship, not through the estate. However, paperwork is still required, such as taping an affidavit of survivorship and a death certificate. Existing mortgages or liens remain; survivorship does not eliminate encumbrances.

3. Can a joint occupancy be altered to occupants in typical without everyone agreeing?

In lots of jurisdictions, one joint tenant can sever the joint occupancy unilaterally (for example, by communicating their interest to themselves as TIC), which gets rid of survivorship moving forward. The precise approach and effect depend on local law and the deed language, so it's prudent to seek advice from a well-informed attorney before making changes.

4. Do taxes work in a different way for JTWROS vs. TIC when an owner dies?

Generally, the deceased owner's fractional interest receives a step-up (or step-down) in income tax basis to worth at death. In JTWROS, the step-up typically uses to the decedent's portion; in TIC, it applies 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 documents should survivors collect after a co-owner dies?

At minimum: certified death certificates, the most recent deed, any mortgage declarations, residential or commercial property tax and insurance coverage documents, and-depending on title-either an affidavit of survivorship (JTWROS) or letters of authority and an individual agent's deed (TIC/probate). Keeping organized records assists with title updates, refinancing, or a future sale.