Legal issue relating to joint owners

[midnightaction]

Hiya

I am not sure if anyone will be able to answer this because we are in the UK and I am not sure if US or UK law would relate to the situation I am thinking of

If DP and I purchase DVC jointly so that we are both legally named on the title, what should happen if god forbid one of us was to pass away.

Is it treated the same way as property i.e it is automatically passed to the legal next of kin who is the joint owner, or does it need to be willed to the other party like stuff other then property usually needs to be.

Obviously this is not something I ever want to have to deal with but I do like to make sure I get all of my legal issues straight should anything happen to either of us.

Hope I have made myself clear

Thanks
Sarah xxx

 

[Szymanbeck]

My partner and I specifically added the DVC ownership to our individual wills. With the will the ownership is to go to the other and if something happens to the both of us it is set to be split between our siblings. Without the will the property could be tied up in probate courts and fair game to any family member. Of course we would not have needed to clarify the line of progression if we were legally able to marry. Oh well, with time things will change.

 

[rigs32]

There are two types of "joint" ownership and what you can do depends on the state. I'm not sure of FL's laws (which I assume govern DVC contracts). BUT, you can either have it set up so that if there are 3 people, each owning 1/3, and one person dies, the other two would automatially own 1/2. OR you can have wills that pass their share onto someone else - either you or another person.

 

[Rence]

You're right about two types of joint ownership. I can't recall the specific legal terms.

I do recall that when they were drawing up the paper work they asked us which way we wanted it and they recommended the one where the survivor automatically gets ownership. That's what we wanted and that's what we went for. So if I pass away, my partner will automatically become the sole owner.

The other option would have placed my half ownership in my estate and the terms of my will would have determined ownership.

 

[midnightaction]

Would the terms your reffering to be

"Joint Tennants & Tennants in Commom".........or something like that because thats the legal terms we use here in the UK and they are the two different types of Joint Property ownership.

"Joint Tennants" means you both legally own 100% share equally of the property and when one of you dies then the other person owns the full 100%

"Tennants in commom" means that you both own 50% of the property and then when one of you dies that 50% goes to the next of kin if no will is left or to the person named on the will if a will is left.

Does that should like the 2 options you were given ??

Thanks for helping

Sarah xxx

 

[CarolAnnC]

My late husband and I had purchased DVC just a few years prior to his death. We did not have a will (he was young and his death very unexpected). I actually did nothing with removing his name until a couple of years later and did this just through Members Administration, sending along his certified death certificate.

 

[midnightaction]

CarolAnnC

I am very sorry for your loss

Thank you for taking the time to reply, it's all been very helpful

Sarah x

 

[Longhairbear]

My partner and I specifically added the DVC ownership to our individual wills. With the will the ownership is to go to the other and if something happens to the both of us it is set to be split between our siblings. Without the will the property could be tied up in probate courts and fair game to any family member. Of course we would not have needed to clarify the line of progression if we were legally able to marry. Oh well, with time things will change.

We did the same thing here in California, and also have set up a trust. We are legally registered domestic partners in this state, that can only be dissolved in court. It's the closest we can get to marriage, but it helps.

 

[Phil Harris]

I suspect what would happen is that your will is subject to UK law (ie everything goes to the spouse unless otherwise stated) but the DVC contract itself is governed by FL law (or whatever it says on the contract). In practice, the difference between tennants in common and joint tennants in a husband/wife situation is that tennants in common requires more paperwork.....

 

[the who #3]

thank you for bringing this subject up. my daughter and i own one dvc together and i think------it is joint.. i understood that if i die the ownership will automatically become totally my daughters. i may need to go back to the original paperwork and recheck. i certainly do not want it to be a problem and i do not want her to have to pay inheritance tax on the dvc. does anyone know about the inheritance tax on dvc?

 

[Boston5602]

My sister and I own our home together as joint tenants and My mother and I own DVC as joint tenants so when I die the house goes to my sister and dvc goes to my mom.


I didn't want them to have to go to court do get what they have coming

 

[Phil Harris]

thank you for bringing this subject up. my daughter and i own one dvc together and i think------it is joint.. i understood that if i die the ownership will automatically become totally my daughters. i may need to go back to the original paperwork and recheck. i certainly do not want it to be a problem and i do not want her to have to pay inheritance tax on the dvc. does anyone know about the inheritance tax on dvc?

In the UK, you will still pay IHT on assets if you are over the threshold (about £250k but it has gone up recently) even if the property passes automatically unless it is going to your husband/wife/civil partner in which case it passes free.

If your assests are way over 250k, then go and get some proper advice on how to minimise the tax!