You’ve worked hard all your life to purchase a beautiful home that you may want your children to inherit after your passing. If you pass away before your partner, you’ll know they still have a place to live, but what happens if they decide to remarry? Could the new partner end up owning what you paid for? You can secure peace of mind that your assets will end up in the hands of the beneficiaries of your choosing by making a tenants in common agreement.
Many long-term and lifelong partners choose not to get married, but that means missing out on laws that benefit married couples. Your property might not revert to your partner automatically after you pass away, and your estate could end up being subject to high capital gains and inheritance tax. Fortunately, you can decide exactly what happens to your home with a tenants in common agreement, giving you secure peace of mind about the future of your assets and loved ones.
Whether you want to ensure you get a fair equity share should you and your partner separate or would like to guarantee your chosen loved ones inherit your assets when you pass away, a tenants in common agreement is the solution.
If you die first under Joint Tenancy your spouse will inherit your property. They may fully intend to ultimately pass the whole estate onto your children, but if they remarry and are the first to die in the new relationship, their new partner inherits it all unless a Will states otherwise.
Joint tenancy can also mean that virtually the whole of your property can be set against either partner’s care fees before the local authority offers help.
In conjunction with your Will and/or a Discretionary Trust, owning your property as Tenants in Common by setting up a property Transfer deed can help stop both of these problems, as well as save higher inheritance tax bills for your beneficiaries if you are an unmarried couple.