Joint tenancy can defeat inheritance even if you have a Will

This is a bold statement to make but there are two good examples I can cite.

Picture two elderly parents who own their property as joint tenants. When one dies the survivor will be the sole owner of the property. If the surviving parent goes into care then the value of the property, save the exemption allowance of £14,000, can be taken into account to pay the fees.

A second example is when a parent remarries and buys a property jointly with their new spouse. If your parent dies first the property is then solely owned by the surviving spouse (step-parent).

So in both cases the fact of joint tenancy brings about a less favourable postion for the potentail family beneficiaries than can be achieved with proper planning.

The simple answer is to sever the tenancy to make the parents tenants-in-common. Then make a Will including a life-interest trust which can leave the surving spouse the full use of the property during their lifetime but allows that shsre to go to the benficiaries after death. This is a good result all around and simple enough to arrange.

If you would like to find out more, make a Will or if you want to arrange a visit please call Bill Ryan on 01225 582 582 or 07942 95 95 99. Alternatively use the contact page and you will be called back shortly.

The home visit Will service is available in Berkshire, Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset and Wiltshire.

What does Probate mean?

‘Probate’ is a term used when talking about applying for the right to deal with a deceased person’s affairs. It’s sometimes called ‘administering the estate’.

If the person who has died leaves a Will

Normally executors named in the Will deal with the person’s affairs after their death.

An executor applies for a ‘grant of probate’ from the probate registry. The ‘grant’ is a legal document that confirms that the executor has the authority to deal with the deceased person’s assets etc.

Typically it is used to access funds, sort out finances, to collect and to share out the deceased person’s assets in accordance with the terms of the Will.

If the person who has died didn’t leave a Will

If there is no Will, a close relative of the deceased can apply to the probate registry to deal with the estate.

The application is then for a ‘grant of letters of administration’. If the grant is given, they are known as ‘administrators’ of the estate.

Just like the grant of probate, the grant of letters of administration is a legal document which confirms the administrator’s authority to deal with the deceased person’s assets.
Is it difficult?

The amount of work required to complete Probate depends on the complexity, the types of assets, and legal or tax complications. There is also a heavy legal responsibility placed on an executor to distribute the estate properly. This can be an onerous responsibility.

It may be desirable to use a professional to deal with probate if the estate is complex or if there is nobody suitable to carry out the role. Sometimes a professional is employed to avoid making choices between siblings!