What Happens to a Property with Two Names on the Deed if One Person Dies?

When two people own property together, understanding what happens if one owner dies is essential. This article explores what occurs when two names are on a deed, and one person dies.

If two people co-own a property and one dies, ownership depends on the agreement type. Joint tenancy transfers ownership; tenancy in common requires probate.

We’ll look into different types of ownership, state-specific laws, and essential terms like right of survivorship to make things clearer.

Also Read: https://jarrettlawfirm.com/two-names-on-deed-one-person-dies/

Table of Contents

1. Types of Joint Property Ownership
2. What Happens When One Owner Dies?
3. State Laws on Property Transfer
4. Right of Survivorship Explained
5. FAQs

Types of Joint Property Ownership

How property is owned affects what happens if one owner dies. Here are the common types:

1. Joint Tenancy with Right of Survivorship:
   • Both owners have equal shares, and the property goes to the surviving owner if one dies.
   • This type of ownership avoids probate, a legal process to confirm who inherits the property.
2. Tenancy in Common:
   • Each owner has a defined share, which can be passed to their heirs or chosen beneficiaries.
   • This ownership type does not have automatic transfer; instead, probate is required for the deceased owner’s share.
3. Tenancy by the Entirety (for married couples):
   • Couples can own property together, similar to joint tenancy with right of survivorship.
   • Not all regions offer this; it’s mostly available in the United States.

What Happens When One Owner Dies?

Joint Tenancy with Right of Survivorship

With joint tenancy with right of survivorship, ownership automatically transfers to the surviving owner when one owner dies. No probate is needed, making the transfer quick and simple.

• How It Works: The surviving owner submits a death certificate to complete the transfer.
• Key Benefits: Avoids probate, faster transfer, and no need for a will to determine inheritance.

Tenancy in Common

In tenancy in common, each owner has a share that they can transfer in a will. When one owner dies, their share does not automatically go to the surviving owner.

• How It Works: The deceased’s share is part of their estate and is distributed according to their will or state inheritance laws.
• Key Points: Involves probate, and the new owner may not necessarily be the remaining joint owner.

Tenancy by the Entirety

Tenancy by the entirety is available to married couples in some regions. It provides the right of survivorship, meaning the property passes to the surviving spouse upon the other’s death without probate.

• How It Works: The surviving spouse receives full ownership without going through probate.
• Benefits: Protects property from claims by creditors and ensures smooth transfer of ownership.

State Laws on Property Transfer

Texas

In Texas, joint tenancy must be stated explicitly on the property deed. Texas also offers community property with right of survivorship for married couples, making property transfer straightforward when one spouse dies.

New York

In New York, joint tenancy and tenancy by the entirety are recognized. For married couples, tenancy by the entirety helps the surviving spouse gain full ownership easily.

British Columbia

British Columbia recognizes joint tenancy with right of survivorship. When one owner dies, the property directly passes to the surviving owner, bypassing probate.

Georgia

In Georgia, joint tenancy with right of survivorship must be clear in the deed. Without this, ownership becomes tenancy in common, requiring probate to transfer the deceased owner’s share.

Right of Survivorship Explained

The right of survivorship allows a surviving owner to automatically gain full property ownership. It is often used by married couples and partners to avoid probate and quickly transfer property.

Advantages:

• Simplifies the transfer of property.
• Bypasses the probate process, saving time and legal costs.
• Prevents ownership disputes, ensuring one owner fully inherits the property.

Disadvantages:

• If the right of survivorship is in place, any will or estate plan regarding that property is overruled, potentially affecting other family members.

Also Read: https://jarrettlawfirm.com/two-names-on-deed-one-person-dies/

FAQs

1. What happens if two names are on a deed and one person dies without a right of survivorship?

• Without a right of survivorship, the deceased owner’s share goes to their estate or heirs through probate. The surviving owner does not automatically receive full ownership.

2. How do you prove ownership if one owner dies?

• The surviving owner provides the deceased’s death certificate to transfer full ownership in cases of joint tenancy with right of survivorship or tenancy by the entirety.

3. Can a joint tenant sell their share of the property?

• Yes, but selling a share may turn joint tenancy into tenancy in common, affecting survivorship rights.

4. Does joint tenancy override a will?

• Yes, with right of survivorship, joint tenancy overrides a will for that specific property, automatically transferring ownership to the surviving owner.

5. How does tenancy in common affect inheritance?

• Tenancy in common allows each owner’s share to pass according to their will, giving them control over who inherits their portion.

Conclusion

When two names are on a deed, and one person dies, the property’s future depends on the type of joint ownership. Owners should consider these options and consult legal experts to clarify the best ownership structure for their goals.