Does your property title say Joint tenancy or tenants in common?

If you don't have a copy of your deed, you can retrieve one from the Minnesota county where the property is located. If your property is “torrens” property, you’ll need to contact the county Registrar of Titles. If your property is “abstract”, the county Recorder will have the information. If you don’t know whether your property is torrens or abstract, contact either official as he or she should be able to help you obtain a copy of your deed. 

When you receive the copy of the deed, read it carefully. Note that if the deed does not specifically state that ownership is held as “joint” tenants, your Minnesota property is deemed to be held as tenants in common.

Joint Tenancy vs Tenants in Common

Tenants in common have the flexibility to allow for unequal ownership of a given property. Joint tenants automatically have equal ownership of the property whereas tenants in common owners may split the percentage ownership however they desire. In both cases, more than two persons may be owners.

Probate is the legal process of transferring ownership of assets from a deceased individual's name into the names of beneficiaries. It also ensures that creditors can make claims for payment from the decedent's estate, and that final tax returns are filed, including an estate tax return if the estate is large enough. All this can take some time and there's some expense involved, so many people plan their estates to try to avoid probate to the greatest extent possible. Unfortunately, holding property as tenants in common won't typically achieve this unless additional steps are taken.

What is jointly owned property?

Jointly owned property is any property held in the name of two or more parties. A good example of jointly owned property is something like a house that you own with another person, typically a spouse. Though land is one of the most common items owned by joint tenants, money can also be held jointly, with bank accounts held in the names of two people with rights of survivorship.

Keep reading to find out more about how jointly owned Minnesota property operates following the death of one owner.

How does tenancy in common work?

How does joint tenancy work?

Joint tenants share equal ownership of the item of property and have equal right to keep or dispose of the property. Joint tenants also have the right of survivorship, which means that if one of the joint tenants dies then the remaining interest in the property is automatically transferred to the surviving owner.

What is the benefit of joint tenancy?

The benefit of jointly owning property is that it can avoid the time and expense associated with the Minnesota probate process. If you own the property as joint tenant with right of survivorship, then the property in question will pass directly to the remaining joint tenant upon your death and will not be considered part of your probate estate. Continuity is a major benefit of joint tenancy as it allows for assets to pass quickly after death without being frozen or held by a probate court.

Dangers of joint tenancy

Before you jump to the conclusion that joint tenancy is best because it avoids probate, consider that joint tenancy may trigger unintended consequences. Because joint tenancy grants full ownership rights to both owners this can be a disadvantage in unstable relationships. In cases where a couple is going through marital problems or a parent jointly owns an asset with an estranged child, no action can be taken without full agreement from the other party.  

Please reference articles from attorneys and legal sites for more information on tenancy and seek legal advice.

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This website is for informational purposes only and is not to be construed as legal advice. If you have questions, please seek the advice of an attorney licensed to practice law in the state where you live.