“Joint Tenancy” and “Tenancy in Common”

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cloggs | 10:18 Thu 14th Jan 2010 | Civil
3 Answers
I recollect that there been a change recently regarding the legal terms “Joint Tenancy” and “Tenancy in Common”. I don’t know if it was to do with Inheritance Taxation or Probate or something else. Does anyone know please?


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There's been no change, recently or otherwise, in what they mean..

What has changed is the advice over which to use to reduce IHT. Use of a trust together with tenancy in common was the recommendation. Current advice for many people is that it no longer matters.
What you are referring to is probably this.
Until October 2007, couples who had joints tenancy of their property found that the property automatically past to the surviving partner on the first death. When the second death occurred, the estate of the second to die was often forced into paying significant IHT - because increases in property values into recent years pushed the estate value above the threshold for IHT. There were ways around it - part of which involved planning one's wills, as well as having the property as 'tenants in common'.
At a stroke overnight, the Chancellor changed the rules such that when the second death occurred (if after some random date in October 2007), any unused nil rate band from the estate of the first death could be used by the estate of the second to die. This effectively provided a doubling to £650k in the IHT threshold for many estates - taking the estate out of IHT liability.
I know this one if it says this in your title:

Restriction: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by the court

means you are tenants in common - If not you are joint tenants

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“Joint Tenancy” and “Tenancy in Common”

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