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If you are a property owner, you need to know what will happen to it in the future. Passing on a house is not always straightforward and it is important to make sure you have the right plans in place.

Even if you have a Will your property might not pass to the beneficiaries you have named, depending on the type of ownership you have. We look at the options and how you can ensure that your home goes to your choice of beneficiary when the time comes.

What happens to a jointly owned property if one party dies?

If you own a property jointly with someone else, you will have one of two types of ownership, either:

Joint tenants; or Tenants in common

You need to find out which type of ownership you have, because it makes a big difference when it comes to passing on property. If you do not know, a solicitor will be able to find this out for you.

Joint tenants

If you hold a property with someone else as joint tenants, then you will both own the whole property together, with neither of you owning a specified share. Should one of you die, the other automatically owns the whole property. This means that you cannot leave your home to anyone else in your Will if you have this type of ownership, as the property will not form part of your estate.

Tenants in common

If you own property with someone else as tenants in common, you will each hold a specified share. This does not have to be half each; one person could own a third and the other two-thirds. If you were to die, then your share would pass under the terms of your Will. If you do not have a Will, then it will pass under the Rules of Intestacy.

Passing on property in your Will

If you own property in your sole name or as a tenant in common, you are strongly advised to make a Will so that you can be sure that it will be passed on to your chosen beneficiaries.

There are Inheritance Tax allowances available in respect of property dependent on who you leave your property to, so you may want to consider whether to make a Will that utilises these. A solicitor will be able to explain your options and discuss the right approach for your situation.

What happens to your house if you do not have a Will?

If you do not have a Will, then your solely owned property or property owned as a tenant in common will pass under the Rules of Intestacy. These set out who will inherit assets in order of preference. By way of example, if you have a spouse and children, your spouse will inherit any personal chattels, the first £322,000 of your net estate, plus half of the remainder. Your children will share the other half of the remainder equally.

If you are cohabiting, you own the property as tenants in common and you have not made a Will, your partner will not inherit anything. This means that should you die, they would have to leave the property if they were not able to buy your share from the estate.

Who is responsible for a house after someone’s death?

If the property is solely owned or owned as a tenant in common, then the deceased’s share will form part of their estate. This will be administered by their executor or, if they did not leave a Will, by their administrator.

The executor or administrator will be responsible for insuring then selling or transferring the property. They will have to act in the best interests of the beneficiaries, which could mean requiring the other tenant in common to leave so that the property can be sold.

Contact us

If you would like further information please contact one of our Wills and Probate experts.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.