How is jointly owned property dealt with upon one person's death if there is a mortgage?

If you own the property as 'joint tenants' then the whole of the property is owned by both of you, meaning that you do not have distinct separable shares in the property that can be either transferred or disposed of. Accordingly, upon one person's death, the principle of survivorship kicks in, such that the whole of the property transfers to the surviving owner. The deceased person then does not have any share of the property that forms part of their estate. The deceased person cannot purport to give their share of the property to a beneficiary under the will.

If there was a joint mortgage over this property, you will still have to ensure those debts are paid. If you cannot meet the mortgage obligations, you will have to look to some other financial arrangement to satisfy the debt, which may include selling the property. If you do not sort something out, creditors can apply for an 'Insolvency Administration Order' within five years of the deceased person's death. This can have the effect of dividing the property in two and can force a sale.

If the property was owned as 'tenants in common' then each person owns a separate share of the property which can be transferred or disposed of. Thus, if the deceased person has willed their share of the property to someone else, it will go to that person during the administration of the estate. Any debts attaching to that share will have to be settled before the assets of the estate, including the share of the property, can be distributed.

Joint ownership situations can become very complex after death. It is essential to get legal advice from a wills and probate lawyer both before and after death. All parties who own the property should have a wills and probate lawyer advise them of how the property and mortgage will be dealt with after either person's death.

Article Source: http://casinoarticles.us

If you would like to know more about making will, wills or probate and wills please visit ContactLaw Solicitors and Lawyers.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated