When purchasing your new property you must consider how you want to hold your land with your co-owner(s) – joint tenants or tenants in common?
The principle feature of joint tenancy is survivorship. Upon the death of one joint tenant the survivor(s) automatically inherits the interest of the deceased party in the property. The surviving tenant(s) is required to register this death upon the title and thereafter can claim that portion of interest.
Unlike joint tenants, tenants in common have no entitlement by way of survivorship. Each tenant in common has an individual estate which survives him. Each tenant may hold their interest in unequal shares; this is often determined by the proportion of capital contributed.
The estate can be left by Will or disposed of during your lifetime. It is important to make mention of your individual estate in your Will, as a method of registration to ensure your interest is passed onto the intended persons.
If you are not sure how you wish to purchase the property, or are purchasing through some other entity (maybe a Trust or a Company) you may sign the contract “and/or nominee or nominees’. By signing “and/or nominee” it gives you the opportunity to consider your options and consult your Solicitor, Conveyancer or Accountant before settlement.
Westley DiGiorgio Norcock can help you determine the most appropriate way to hold or purchase your new property. They can also assist with the preparation of Discretionary Trusts.