Severance of Tenancy, Tenancy in common, Inheritance Tax Avoidance Strategy
Inheritance Tax, Wills, Making of a Will and Tax Planning Practitioners
Probate, Wills and Probate, Inheritance Tax, Secure Storage of Documents
Will Writers, Last Will and Testament, Inheritance Tax and Law, Financial Plan
How to Write a Will, Inheritance Law, Probate, Wills Secure Storage - Heritage Law
Inheritance Planning Tax and Law, No Last Will and Testament, Check Liability
Wills, Writing a Will, Making a Will, Updating a Will, Free Reminder Service
Writing a Will Consultants, Somerset Wills, South West UK, Legal Document
Free Wills Probate Consultation, Gloucestershire Wills Contact Heritage Law
Wills, Inheritance Tax, Probate, Tax Planning Glossary of Terms
Inheritance Tax, Society of Will Writers and Estate Planning Practitoners - Heritage Law
 
 

Severance of Tenancy

Most house 'co-owners' own their home as 'joint tenants'. This means that if one joint owner dies the survivor would own the total value outright irrespective of what might be written in a Will. Furthermore, the whole value would be means tested where care costs are assessed.

There is an alternative method of ownership known as 'tenancy in common'. This means that each of the 'co-owners' owns a share of the property and can deal with it as they wish. To make this change from joint tenants there needs to be a Severance of Tenancy agreement between the owners that is recorded at the Land Registry.

What are the benefits and features of using a 'Severance of Tenancy'

BENEFITS -

  • Allows, a co-owner of a property, to dispose of their share/interest in the property, as they see fit through their Will.
  • Can be used as part of an Inheritance Tax avoidance strategy.
  • May also reduce exposure to the ravages of ‘the cost of care’.

FEATURES -

  • Property can be owned by more than one person, either as joint owners or as owners in common. On the death of one joint owner their share/interest passes by survivorship to the surviving owner(s), regardless of their wishes as expressed in their Will.
  • On the death of an owner in common, their share/interest passes on their death according to their wishes as expressed in their will.
  • To change the ownership of a property from joint owners to owners in common, it is necessary to sever the existing (joint) ownership agreement.
  • To effect this change, all owners sign a Notice of Severance of Joint Tenancy which is then stored with the deeds relating to the property.