When you co-own property, the way you hold title manages what takes place at death-often more than your will. This short article strolls you through the legal and practical distinctions in between renters in common (TIC) and joint tenancy with right of survivorship (JTWROS), what to anticipate when one owner passes away, and how to prepare with self-confidence. Contact us by either using the online type or calling us directly at 414-253-8500 for legal help.

Why Title Matters More Than The Majority Of People Realize

Real estate doesn't automatically follow the guidelines in a will. Instead, the deed's vesting language-how the owners are listed-can send the residential or commercial property on really various paths at death. In short:

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

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

Key point: Your deed can bypass your will when it comes to who receives your genuine estate.

If you're brand-new to probate and non-probate transfers, you may discover this overview useful: 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 disappears into the survivors' interests by operation of law.

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

Note: Some jurisdictions likewise acknowledge occupancy by the whole for married spouses. Its survivorship function is comparable to joint occupancy, but it's an unique type of ownership with lender and transfer subtleties. If you're not sure how your deed is entitled, have a lawyer review the specific language on your tape-recorded 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 enduring owner(s). The deceased owner's interest passes by survivorship, not by will.

2. Paperwork is still needed. Although probate is typically avoided, you'll typically need to:

- Record an affidavit of survivorship (or comparable kind) and

- Record a qualified 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 doesn't eliminate valid liens. The loan and any taped encumbrances remain connected to the residential or commercial property.

- Residential or commercial property taxes and insurance: Notify the tax authority and insurer quickly to keep billing and coverage current.

- Simultaneous death or common catastrophe: If owners pass away close in time and the deed doesn't deal with order of death, default guidelines can apply. This can complicate who receives the residential or commercial property.

- Unintended disinheritance: JTWROS can accidentally disinherit kids from a previous relationship if a spouse or partner outlasts you and after that leaves the residential or commercial property in other places. If that's a concern, a trust can supply guardrails. For a deeper dive, see: Is It Better to Use Joint Ownership or a Trust to Give a Home?.

When to seek legal help rapidly: If another joint renter just recently altered title (e.g., recorded a deed severing the joint occupancy) or if there are lender concerns, get suggestions quickly to prevent losing survivorship rights or to browse claims.

If the deceased was a Renter in Common (TIC)

What typically takes place:

1. No automatic survivorship. The decedent's share belongs to 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. Realty is often a probate asset unless other planning is in location (for example, the share is held in a trust).

The typical steps:

- The individual representative (administrator) may require to:

- Open an estate and get authority (letters).

- Manage or sell the decedent's fractional interest.

- Distribute the share (or sale proceeds) to recipients.

- Record a personal representative's deed if a transfer takes place.

Co-owner characteristics:

- Remaining TIC owners maintain their shares. They do not immediately receive the decedent's portion.

- If the decedent's recipients don't wish to co-own, they (or the administrator) might request a sale or, as a last option, pursue a partition action to force a sale if no arrangement can be reached.

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

Pros and Cons at a Look (Narrative)

Joint Tenancy (JTWROS) Strengths

- Faster transition at death, often 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 delays if the survivor needs to refinance or offer.

Joint Tenancy (JTWROS) Risks

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

- Severance threat: A joint renter can in some cases unilaterally sever the joint tenancy, transforming it to TIC-undercutting survivorship.

- Creditor direct exposure: A creditor of one joint occupant might complicate refinancing or title.

Tenants in Common (TIC) Strengths

- Control and flexibility: You can leave your share to your selected recipients.

- Unequal ownership allowed, matching contributions or investment portions.

- Better fit for non-spouse co-investors and blended-family preparation.

Tenants in Common (TIC) Risks

- Probate exposure: The share may need probate unless it's currently in a trust or moved through a non-probate method.

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

- Liquidity difficulties: Selling a fractional interest can be hard and might need court involvement.

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

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

- A revocable living trust can hold title to your residential or commercial property and avoid probate for that asset if correctly funded. It also enables detailed instructions for who uses the residential or commercial property and when after your death.

- Beneficiary classifications don't usually govern realty, however they matter for checking account and retirement funds that might be needed 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 readily available) can move genuine residential or commercial property outside probate while protecting your control during life. The exact guidelines are jurisdiction-specific and need to be executed specifically.

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

1. Couple on the home in JTWROS; one spouse passes away: The survivor records the affidavit and death certificate. Title vests fully in the survivor. Later estate distribution happens per the survivor's plan-not the decedent's-unless other preparation was done.

2. Adult brother or sisters 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 heirs either keep co-owning or negotiate a buyout/sale.

3. Unmarried partners in JTWROS however later on different: One records a deed severing the joint occupancy (if allowed), transforming to TIC. If one passes away after severance, survivorship is gone; the deceased's share goes to their estate.

4. One owner has significant personal financial obligations: Whether JTWROS or TIC, recorded liens can cloud title or follow sale profits. Survivorship does not wipe out valid encumbrances. Planning might include 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 multiple qualified death certificates. You'll typically 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, insurer, and tax authority. Keep payments present; demand billing updates and validate protection.

4. Update the estate strategy of the survivor. Now that title is entirely in the survivor's name, confirm who ultimately acquires. For broader context on titling and deeds, see our overview on titling and deeds.

5. Look for liens or home equity lines. Survivorship won't remove taped encumbrances.

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

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

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

3. Maintain the residential or commercial property. Pay taxes, insurance coverage, HOA charges, and vital repairs; track expenses 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 agreement fails, a partition action might be the last option.

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

Practical tip: Keep meticulous records of carrying costs and repair work during estate administration-these may 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 fair market price at death.

- In JTWROS, the step-up often applies to the deceased owner's part.

- In TIC, the step-up applies to the decedent's fractional interest that passes through the estate.

Capital gains: If the survivor later on offers, gains are computed from the adjusted basis (including any step-up) minus offering expenses.

Estate or estate tax: Thresholds and rules are jurisdiction-specific and change in time. Get tailored suggestions before selling or retitling.

Residential or commercial property tax reassessment: Some jurisdictions reassess on transfer; others use exemptions for specific transfers. Verify in your area before you act.

For more comprehensive planning beyond probate, review our comparison of revocable living trusts vs. wills.

Reading Your Deed: How to Know What You Have

Try to find precise vesting language on the most recent tape-recorded deed:

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

- "As tenants in common."

- "Husband and spouse as occupants by the entirety" (where acknowledged).

If the deed is silent, default statutes may apply-and silence can activate disagreements. When in doubt, order a title search and have a lawyer evaluation. If you require to alter how it's held, that usually needs tape-recording a brand-new deed (and, if suitable, lender authorization).

Changing Course: Can You Switch Between TIC and JTWROS?

- From TIC to JTWROS: Co-owners can sign and tape a brand-new deed that expressly produces survivorship rights. Title insurance companies frequently prefer a fresh instrument to avoid obscurity.

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

- After a death: Once a joint renter passes away, survivorship relates back to the original deed. You can't "reverse" survivorship retroactively; you 'd need different planning (e.g., trusts) beforehand.

For owners evaluating deed-based options to prevent probate, see our overview on moving 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, usage rights, sale timing).

- Co-ownership arrangement: For TIC owners, set written guidelines for expenses, repairs, buyouts, sale approvals, and conflict resolution.

- Transfer-on-death (TOD) deed (where available): Lets you keep complete control during life while calling a beneficiary for the residential or commercial property at death. Execution and recording information are crucial.

- Insurance evaluation: Ensure homeowner's coverage and any landlord/rental riders match truth. Update called insureds after death.

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

Warning That Require Prompt Legal Advice

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

- Unclear marital status or common-law marital relationship questions at time of purchase.

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

- Creditor claims, liens, or HOA offenses 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 numerous counties needing collaborated filings.

Document Checklist (Save This)

- Certified death certificate(s)

- Affidavit of survivorship (for JTWROS)

- Letters designating the personal agent (for TIC in probate)

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

- Latest taped deed and title report

- Mortgage statements, residential or commercial property tax expenses, insurance statements

- HOA/condo statements and laws (if suitable)

- Lien reward or subordination letters (if needed)

- Closing declaration if selling

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

Often sensible for:

- Couples who want the survivor to own the home right away, with minimal bureaucracy.

- Co-owners who are aligned on supreme personality and have actually collaborated estate plans.

Often not ideal for:

- Blended households where you want to protect children from prior relationships.

- Investment partners who require clear exit/buyout mechanics.

- Situations with unequal contributions or different time horizons.

If you're uncertain which course fits, a brief strategy session with a well-informed real estate and estate planning lawyer can clarify compromises and established a future-proof strategy.

Contact a Lawyer for Tenants in Common vs. Joint Tenancy

Have questions about Tenants in Common vs. Joint Tenancy or what takes place when one owner passes away? We can help you understand your deed, complete the required filings, and construct a strategy that balances control, survivorship, and recipient defenses. Contact Heritage Law Office by utilizing our online form or calling 414-253-8500 to speak with a lawyer about your circumstance.

1. What is the main difference in between Tenants in Common vs. Joint Tenancy when one owner passes away?

In joint tenancy with right of survivorship (JTWROS), the departed owner's interest typically moves instantly to the making it through owner(s) by operation of law. In occupants in typical (TIC), there is no survivorship: the deceased owner's share passes under their will or by intestacy and might need probate.

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

Often, yes-for that deceased owner's interest-because the transfer occurs by survivorship, not through the estate. However, paperwork is still needed, such as tape-recording an affidavit of survivorship and a death certificate. Existing mortgages or liens stay; survivorship doesn't remove encumbrances.

3. Can a joint occupancy be changed to renters in typical without everybody agreeing?

In many jurisdictions, one joint occupant can sever the joint tenancy unilaterally (for instance, by communicating their interest to themselves as TIC), which eliminates 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 modifications.

4. Do taxes work differently for JTWROS vs. TIC when an owner dies?

Generally, the deceased owner's fractional interest gets a step-up (or step-down) in income tax basis to fair market worth at death. In JTWROS, the step-up generally applies to the decedent's part; in TIC, it applies to the decedent's fractional share that goes through the estate. Capital gains on a later sale are determined from the changed basis, less selling costs.

5. What files should survivors collect after a co-owner dies?

At minimum: qualified 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 a personal representative's deed (TIC/probate). Keeping arranged records assists with title updates, refinancing, or a future sale.