What Happens to a Jointly Owned House When Someone Dies?

When there are two names on a deed, and one person dies, it can cause a great deal of confusion among family members when determining what happens with the asset. It is important to understand how jointly-owned property is handled after someone has died so that you, as either an owner of such an asset or a beneficiary who has a right to receive it, know your rights. But we are here to dispel the confusion surrounding families during this trying time. Here’s what happens to a jointly-owned house when someone dies.

“Understanding what happens to a jointly-owned property when one of the owners passes away is crucial to protecting the legacy of the deceased and ensuring a smooth transition,” said Ronald V. Larson, a Partner at Gokal Law Group and adjunct law professor at Trinity Law School in Santa Ana teaching business and corporate law. He has three decades of experience litigating complex business and commercial cases in California state and federal courts and has recovered millions of dollars for clients. “While these cases are usually pretty straightforward, there are times when foul play warrants litigation, and understanding when you have a case is crucial. If you are the beneficiary to a loved one, you should never leave their legacy and your inheritance to chance,” he said.

What Happens to a Jointly-Owned House When Someone Dies?

When someone dies while jointly owning a house, the surviving owner automatically inherits the deceased owner’s share of the property, typically without going through probate court, because of the “right of survivorship” inherent in joint tenancy. This automatic transfer of ownership can apply to anyone who jointly owns a property or asset, whether it’s a spouse, child, or even a friend. 

Essentially, the surviving owner becomes the sole owner of the house. But there’s much more to these complex situations that you must understand. From survivorship property to the possibility of litigation, here is everything you need to know about what happens when one joint owner dies

What Does Right of Survivorship Mean?

The right of survivorship is a characteristic of jointly-owned property. If you are dealing with a property that has joint tenants with a rights of survivorship designation, this means that the surviving owner (or owners) automatically receives the deceased owner’s share of the property. 

It’s important to mention that community property with the right of survivorship differs slightly from jointly-owned property, but the same process usually applies. 

Joint Tenancy vs. Tenants in Common

There are two terms that often come into play and can influence what happens to a jointly-owned house when someone dies – joint tenancy and tenants in common. 

Tenants in common are co-owners who own specific shares of the property. When a tenant in common dies, their share in the property generally passes in accordance with their will, and if there is not a will to guide this process, it will pass under intestacy rules. With tenants in common, the surviving owner does not automatically inherit it. 

When there are joint tenants, however, each person owns the whole property with the other, and when the co-owner dies, their stake in the property automatically passes to the surviving co-owners. We will get into this in more detail next.

Related Article: Intestate Succession Order Under California Probate Law

What Happens to a Jointly Owned Property if One Owner Dies

As we mentioned, if you have jointly owned assets when one joint owner dies, the property is yours. 

While this transfer of ownership to the surviving owner is, generally, what happens to a jointly owned house when someone dies, there are still several steps you need to take to declare yourself as the sole owner of the asset and make dealing with the property down the road easier. 

If you and someone else own a house together, for example, and the joint owner passes away, removing their name from the title and claiming yourself as the sole owner as soon as possible can prevent issues later, such as if you pass away because the house could be sold as part of your estate. 

To change the title, you usually need a copy of the death certificate and a Survivorship Affidavit in the county where the property is located. The affidavit can include:  

  • The legal description of the land, which you can often find on the deed.
  • A statement that you own it in joint tenancy.
  • A notice of where the deed is filed and recorded.
  • The name and date of the death of your spouse.
  • The name and signature of the surviving owner.

This generally applies to vehicles, bank accounts, investment accounts, physical assets, and any other assets. But there is a little more to understanding what happens when one person on a deed dies

Assumption of Mortgage After Death

If you and a joint owner have a mortgage on a property, the responsibility of making payments on the mortgage will fall on the survivor after the first joint owner passes away. As we mentioned, in this case, the surviving owner would become the sole owner. 

If you are the only one on the mortgage but are married and don’t have a will, intestacy laws will generally pass your house to the next of kin (i.e., your spouse). Sometimes, the estate can pay off the mortgage in full. If not, as we mentioned, your spouse will become responsible for the remaining mortgage if they choose to keep the property.  

What to Know About Jointly Owned Property and Probate

Property with joint tenancy generally avoids probate, and especially for younger couples, this is sometimes all the estate planning they want to engage in initially. However, this only applies to property when there is a surviving spouse. If you inherit jointly-owned property, your property will go through probate when you pass unless you set up a trust. 

Related Article: Which Assets Can Avoid Probate?

Can a Survivorship Deed Be Contested?

Under most circumstances, the right of survivorship overrides terms that may be mentioned in the decedent’s will. Still, there are situations where someone may contest a survivorship deed. 

In California, for example, survivorship rights in joint bank accounts can be challenged if clear and convincing evidence demonstrates the original account holder had contrary intentions to what was assumed in its creation. There are other situations that warrant challenging the right of survivorship.

If the deed was acquired under fraud or forgery or the proper legal procedures weren’t followed when adding their name to the document, this can also be grounds for a contest. 

Further, if a relative or caregiver, for example, takes advantage of someone who is not of sound mind to become a joint owner and enjoy the right of survivorship, this could also be challenged on the grounds of undue influence. 

Generally, people contest these deeds when they suspect foul play was involved to be included as a joint owner and reap the rewards of the right of survivorship. For beneficiaries, this could equate to stealing from the estate and what you are due to inherit.  

Related Article: How Gokal Law Group Helps Clients Succeed in Litigation

Now You Know What Happens to a Jointly-Owned House When Someone Dies. We Can Help Navigate this Process.

Understanding what happens to a jointly-owned house when someone dies is not always simple. This depends on your specific situation. While the process of assuming ownership when a joint owner dies is usually smooth and straightforward, there are instances where bad actors use underhanded tactics to become joint owners, bypass probate, and inherit property unjustly.

If this sounds like your situation, working with an attorney is of the utmost importance to hold them accountable and ensure that the wrong party doesn’t inherit property. Schedule a consultation with Gokal Law Group today to receive the inheritance you deserve.

Leave a Reply

Your email address will not be published. Required fields are marked *