Who does my property go to when I die?

What happens to your property when you die depends on how you own it and whether you have made a valid Will.

If a property is held in your sole name, it forms part of your estate when you die. If you have a Will, the property will pass in accordance with the terms of that Will. If you do not have a Will, it will pass under the intestacy rules. These rules set out who inherits your estate, but they may not reflect your wishes.

Property can also be owned jointly. There are two main ways to own property with someone else: as joint tenants or as tenants in common.

If you own property as joint tenants, you both own the whole property together. When one owner dies, their interest automatically passes to the surviving owner. This is known as the right of survivorship. The property does not pass under the deceased person’s Will or under the intestacy rules.

If you own property as tenants in common, each owner has a defined share, such as 50% each. When one owner dies, their share does not pass automatically to the other owner. Instead, it passes under their Will or, if there is no Will, under the intestacy rules.

Property held in a sole name, or a share held as tenants in common, can also be placed into a trust in a Will.

For example, a life interest trust can allow someone to live in the property, or receive income from it, during their lifetime. After that person dies, the property can pass to other chosen beneficiaries, such as children. This can be particularly useful where you and your partner own a property together but have children from previous relationships. A life interest trust can allow the surviving partner to continue living in the property, while ultimately ensuring that your share passes to your own children.

A discretionary trust gives trustees flexibility to decide how and when the property, or its value, should be used for a group of possible beneficiaries. This can be useful where family circumstances may change in the future or where you have vulnerable beneficiaries.

Property can also be placed into trust during your lifetime. A lifetime trust may be considered for various reasons, including protecting assets for future generations or planning for family succession. The tax and practical consequences of lifetime trusts can be complex, so they need careful consideration.

Understanding how your property is owned is an important part of estate planning. It is worth reviewing both your title deeds and your Will to make sure they work together and reflect your wishes.

Should you need expert legal advice regarding any of the above or indeed any other estate planning matter, please contact Lucy Dunning at lucy.dunning@fieldingsporter.co.uk or 01204 540 900.

The contents of this article are for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.