The Importance Of A Will When Buying A Property
For Dying Matters Week, Wills and Probate Solicitor Megan Lovell discusses the importance of a Will when purchasing a property….
How you own a property jointly with another person or persons affects what happens when one of you passes away. It is therefore important to think about your Will when buying a property.
When buying a property jointly with another person, you will be asked how you want to own your property. The options are to own as joint tenants or tenants in common.
On death, if you own as joint tenants, then the property will pass automatically, through the right of survivorship, to the surviving co-owner, regardless of any Will you may have made.
A tenancy in common on the other hand means that you each have distinct shares in the property and upon death your individual shares will pass in accordance with the terms of your Will. Alternatively, if you don’t have a Will, then your share will pass in accordance with the rules of intestacy, to relatives in an order of priority set by the law.
Choosing A Tenancy In Common – Make A Will
A tenancy in common is often the preferred option where you are each making different financial contributions to the purchase price of the property.
If you choose to own as tenants in common then it is really important that you consider making a Will and decide who you want to receive your share in the property in the event of your death.
It may be that whilst you’d be happy for the surviving co-owner to occupy the property after your death, you may want to protect the capital for others, such as children from previous relationships or for your side of the family. This can be achieved through carefully drafted trust provisions in your Will.
What If I’m Co-habiting?
If you are purchasing a property as cohabitees then you cannot rely on the intestacy provisions being sufficient to pass on your share to each other. To be honest neither can spouses, particularly given the cap on the amount that the surviving spouse receives when one spouse dies intestate.
Cohabiting partners receive nothing in the event that one of you dies without a valid Will. This can have the result of your property being co-owned by your partner and potentially your parents, siblings, or more distant relatives. Or a situation where the only option is to sell the property to pay off your estate’s share of the property. Not an ideal outcome either way, I’m sure many would agree.
Is It Worth The Cost?
Whilst I appreciate that when buying property, the last thing you want is to see yet another legal adviser. It’s an exciting time and why dampen things by considering what would happen if you were to die. However, hopefully the above highlights why you should consider making your Will alongside the conveyancing transaction is important.
How Can We Help?
If you are in the process of buying a property and you would like to discuss your Will, please do not hesitate to contact me on 01530 564498 or by email at m.lovell@timms-law.com. Alternatively, you can visit the Wills and Probate page of our website here.
May 2023