So what exactly is Tenants in Common?

Well tenants in common means

If you own your home as joint tenants then both of you owns the whole of the property, so when one partner dies, the other automatically becomes the sole owner of the home. With tenants in common, you each own a share of the property, typically split half and half.

So it relates to the joint ownership of property where each joint tenant owns a separate half of the property. On the death of one of the joint owners, their share passes to their beneficiaries by their will or intestacy.

The advantage of owning a property as tenants in common is when one partner dies the property is not automatically passed to the other via survivorship, it can be left to a partner in a will or be passed another party or trust fund in the Will.

This allows for the property to be moved outside of your partner’s estate whilst still allowing your partner to benefit from the use of the property. This approach when combined with the correct form of Last Will and Testament can be highly effective in protecting the value of some assets from the effects of long term care and could also play a key role in a strategy to help reduce inheritance tax.