Two or more people may own a property together as joint tenants in common (JTIC). In this type of ownership, each person owns a specific share of the property. For example, if two people own a property as JTIC, each person would own 50% of the property.
If one of the owners dies, their share of the property does not automatically go to the other owner. Instead, it goes to whoever is named in the owner's will.
Joint tenants in common is different from joint tenancy, in which all owners have an equal share of the property and the share of any owner who dies automatically goes to the other owners. Can I force the sale of a jointly owned property? Yes, you can force the sale of a jointly owned property, but only if all of the owners agree to sell. If even one owner does not want to sell, then the property cannot be sold against their wishes.
What is the difference between joint ownership and co-ownership?
There are a few key differences between joint ownership and co-ownership:
- Joint ownership always involves at least two people, while co-ownership can involve multiple people.
- Joint ownership always involves equal ownership shares, while co-ownership can involve unequal ownership shares.
- Joint ownership always gives each owner the right of survivorship, meaning that if one owner dies, the other owner(s) will automatically inherit their ownership share(s). Co-ownership does not necessarily have this right of survivorship. Is probate required for tenants in common? If the deceased person owned property as a tenant in common, probate is not required in order to transfer ownership of the deceased person's interest in the property to their heirs. However, if the deceased person owned the property jointly with someone else as a joint tenant, then probate would be required in order to transfer ownership of the property to the surviving joint tenant.
What is the difference between TIC and Jtwros?
There are a few key differences between TICs and jtwros:
1. Joint Tenancy with Right of Survivorship vs. Tenancy in Common
Jtwros is a type of ownership where two or more people own a property together and have the right of survivorship. This means that if one owner dies, the other owner(s) automatically inherit their share of the property.
TICs, on the other hand, are a type of co-ownership where each owner has a undivided interest in the property. This means that each owner has an equal right to use the entire property, but does not have the right of survivorship.
2. Equal vs. Unequal Shares
In a jtwros arrangement, each owner has an equal share in the property. This is not the case with a TIC, where each owner can have a different percentage of ownership.
3. Transferring Ownership
With a jtwros, ownership can only be transferred to the other owner (or owners) through death or a joint sale. With a TIC, each owner can transfer their interest in the property to whomever they choose, without the approval of the other owners. Do joint tenants with right of survivorship get a step up in basis? Yes, joint tenants with right of survivorship do get a step up in basis. When one joint tenant dies, the surviving tenant receives a step up in basis for the deceased tenant's share of the property. This step up in basis allows the surviving tenant to avoid paying capital gains tax on the deceased tenant's portion of the property.