When multiple people own property together in British Columbia, the form of co-ownership determines what happens when one of the owners passes away. The two most common forms are Joint Tenancy and Tenancy in Common, and while they may appear similar at first, the way title is transferred to surviving parties is very different.

Understanding these differences is crucial for estate planning, avoiding unexpected disputes, and ensuring your property is handled according to your wishes. Below, we explain how title passes under each arrangement and the key implications for owners and their heirs.

Joint Tenancy: Right of Survivorship

In a Joint Tenancy, each co-owner holds an equal share of the property. The key feature is the right of survivorship, which means:

• Automatic Transfer: When one co-owner dies, their interest automatically passes to the surviving co-owners.
• No Probate Required: The deceased’s share does not go through their estate or will; instead, the Land Title Office updates ownership directly.

Procedure for Survivors:

1. The surviving co-owner(s) provide a death certificate to the Land Title Office.
2. The Land Title Office removes the deceased’s name and transfers their share to the surviving owner(s).

Effect: The property remains jointly owned by the survivors, and the deceased’s heirs have no legal claim to the property.

Tenancy in Common: Passing Through the Estate

In a Tenancy in Common, each co-owner can hold unequal shares, and there is no right of survivorship. Instead:

• Estate Transfer: When a co-owner dies, their share becomes part of their estate. It is transferred according to their will, or under intestate succession if there is no will.
• Probate Required: Unlike Joint Tenancy, probate is typically required to transfer ownership to heirs.

Procedure for Executors:

1. The executor applies for probate if necessary.
2. The executor arranges the transfer of the deceased’s share to heirs.
3. The Land Title Office updates the title to reflect new ownership.

Effect: New heirs may become co-owners, meaning decisions about the property could require cooperation among more parties.

Choosing between Joint Tenancy and Tenancy in Common has significant implications for estate planning, taxes, and family dynamics. Joint Tenancy provides simplicity and avoids probate, but it removes the ability to direct property through a will. Tenancy in Common offers more flexibility for estate planning but introduces complexity through probate and shared decision-making among heirs.

Have any questions or need assistance? Contact KC Notary & Co. today to schedule a consultation. Let KC Notary & Co. simplify the process for you, so you can enjoy the exciting moments stress-free!