Glossary · UK
What is Beneficial Joint Tenancy?
A form of co-owning property where owners hold the whole asset together with no distinct shares, and a deceased owner's interest passes automatically to the survivors.
Full Definition
Beneficial joint tenancy is one of two ways two or more people can co-own property in England and Wales (the other being tenancy in common). Under a joint tenancy the owners hold the entire property collectively rather than in identifiable shares, and the defining feature is the 'right of survivorship': when one owner dies, their interest passes automatically to the surviving owner(s), bypassing the will and probate. It is the common default for married couples and civil partners. Because the share passes outside the estate, it does not flow through a will, though it still forms part of the deceased's estate for inheritance tax (nil-rate band GBP 325,000 plus residence nil-rate band GBP 175,000). Owners can convert to a tenancy in common by 'severing' the joint tenancy - useful for unequal contributions, tax planning or protecting a child's inheritance. Scotland uses different terminology and rules. The distinction affects who inherits, how the property can be left in a will, and IHT planning.