Buying real estate is one of the largest financial decisions most people will ever make. Whether you’re purchasing a home with your spouse, a family member, or a business partner, one important decision is often overlooked:

How should you hold title to the property?

The way ownership is listed on the deed determines what happens if one owner passes away, wants to sell their interest, or faces financial difficulties. Understanding the difference between Joint Tenancy and Tenants in Common can help you choose the ownership arrangement that best fits your goals.

What Is Joint Tenancy?

Joint tenancy is a form of property ownership in which two or more people own equal shares of the property together.

One of the defining features of joint tenancy is the right of survivorship. This means that when one owner dies, their interest in the property automatically passes to the surviving owner or owners, regardless of what their Will says.

For example, if a married couple owns their home as joint tenants and one spouse dies, the surviving spouse automatically becomes the sole owner of the property after the appropriate legal documents are recorded.

Because ownership transfers automatically, the deceased owner’s interest generally does not become part of the probate estate.

Benefits of Joint Tenancy

Joint tenancy may offer several advantages, including:

• Automatic transfer of ownership to the surviving owner.
• Avoidance of probate for the deceased owner’s interest.
• Equal ownership rights for each owner.
• Simplicity for many married couples and certain family situations.

However, joint tenancy is not the right choice for every situation.

Potential Drawbacks of Joint Tenancy

Because of the right of survivorship, an owner cannot leave their share of the property to someone else through their Will.

For example, if two siblings own property as joint tenants and one sibling wishes to leave their interest to their children, that generally cannot happen. Upon death, the surviving sibling automatically becomes the sole owner.

Joint tenancy may also create unintended consequences if one owner experiences financial difficulties or if family circumstances change.

Related Article: Estate Planning and Divorce

 

What Is Tenants in Common?

Tenants in common is another common method of owning real estate.

Unlike joint tenancy, each owner holds a separate ownership interest that can be equal or unequal.

For example:

• Owner A may own 50%.
• Owner B may own 30%.
• Owner C may own 20%.

Each owner’s percentage interest is individually owned and may generally be sold, transferred, or inherited.

Most importantly, there is no right of survivorship.

When one owner dies, their ownership interest becomes part of their estate and passes according to their Will or, if there is no Will, under Connecticut’s intestacy laws.

Benefits of Tenants in Common

Tenants in common offers greater flexibility because owners can:

• Own different percentage interests.
• Leave their ownership share to family members or other beneficiaries.
• Sell or transfer their interest independently, subject to any applicable agreements.
• Use the ownership structure for investment or business purposes.

This arrangement is often used by siblings inheriting property, unmarried couples, investors, and business partners.

 

Related Article: Estate Planning for Blended Families in Connecticut: Protecting Everyone You Love

 

Potential Drawbacks of Tenants in Common

Because there is no right of survivorship, the deceased owner’s interest will typically go through probate unless other estate planning strategies are in place.

This means surviving owners may suddenly find themselves co-owning property with the deceased owner’s heirs or beneficiaries.

For that reason, many co-owners also enter into ownership agreements addressing future sales, buyouts, or succession planning.

Joint Tenancy vs. Tenants in Common

Joint Tenancy	Tenants in Common
Equal ownership interests	Ownership percentages may be equal or unequal
Includes right of survivorship	No right of survivorship
Ownership passes automatically to surviving owner	Ownership passes through the owner’s estate
Usually avoids probate for the deceased owner’s interest	Probate is generally required unless other planning exists
Common among married couples	Common among investors, siblings, and business partners

Which Type of Ownership Is Right for You?

There is no one-size-fits-all answer.

A joint tenancy may make sense if your goal is for the surviving owner to automatically receive the property without probate.

Tenants in common may be a better choice if you want the flexibility to leave your ownership interest to children, other family members, or beneficiaries through your estate plan.

Your decision should also take into account factors such as:

• Estate planning goals.
• Family relationships.
• Tax considerations.
• Asset protection concerns.
• Future plans for the property.

Can You Change How You Hold Title?

In many cases, yes.

Property ownership can often be changed after purchase by recording a new deed. However, changing ownership may have legal, tax, or financial consequences depending on your circumstances.

Before making changes, it’s important to consult with a Connecticut real estate or estate planning attorney to ensure the new ownership structure aligns with your overall goals.

 

Related Article: Can You Sell a House in Connecticut If One Owner Has Passed Away?

 

Choosing the Right Ownership Structure

The way you hold title to your property can have lasting effects on your family, your estate plan, and the future transfer of your home or investment property.

Whether you’re purchasing your first home, adding a family member to a deed, or reviewing your estate plan, understanding your ownership options is an important step toward protecting your interests.

At Reed Wilson Case, we help Connecticut families and property owners understand their real estate ownership options and ensure those decisions align with their broader estate planning goals. If you’re buying, selling, or reviewing how your property is titled, we’re here to help you make informed decisions with confidence.

Disclaimer: The information provided in this article does not, and is not intended to, constitute legal advice and is for general informational purposes only.

Let Us Know How We Can Help!

Please fill in your contact information and a brief message about what you need help with. A consultation will need to be scheduled in order to provide legal guidance.