Owning property with another person can make things easier while both owners are alive, but what happens when one owner dies? The answer depends largely on how the property was titled and the type of ownership arrangement that was established.
In Illinois, jointly owned property does not always automatically pass to the surviving owner. Different forms of ownership can lead to very different outcomes, including whether the deceased owner’s interest transfers directly to the surviving owner or becomes part of their estate.
Understanding how jointly owned property works can help homeowners and families avoid confusion and make more informed estate planning decisions.
The Type of Ownership Matters
When two or more people own property together, the ownership structure determines what happens to each person’s share after death.
Some forms of ownership include a right of survivorship, which means the surviving owner may automatically receive the deceased owner’s interest. Other arrangements do not include this right, meaning the deceased owner’s share may pass according to their will or through the probate process.
For this reason, it is important to understand exactly how a property is titled rather than simply assuming that joint ownership means the surviving owner automatically inherits everything.
Joint Tenancy With Right of Survivorship
Joint tenancy is a common form of property ownership involving two or more individuals.
One important feature of joint tenancy is the right of survivorship. When one joint owner dies, their ownership interest generally passes to the surviving joint owner or owners.
For example, if two people own a home as joint tenants with right of survivorship and one owner dies, the surviving owner may become the sole owner of the property.
Because the deceased owner’s interest transfers through the right of survivorship, that interest may not pass according to the terms of their will.
However, certain steps may still be necessary to update the property’s ownership records and establish the surviving owner’s interest.
Tenancy in Common
Tenancy in common works differently from joint tenancy.
When property is owned as tenants in common, each owner has a separate ownership interest. These interests do not automatically pass to the surviving owner when one owner dies.
Instead, the deceased owner’s share generally becomes part of their estate.
That ownership interest may then pass according to the deceased person’s will, trust, or applicable Illinois inheritance laws if they did not have an estate plan in place.
For example, two siblings may own a property together as tenants in common. If one sibling dies, their share could pass to their children or another beneficiary rather than automatically becoming the property of the surviving sibling.
This can result in the surviving owner sharing ownership with someone they may not have originally intended to own the property with.
Joint Ownership Between Married Couples
Married couples in Illinois may own property under different forms of ownership depending on how the property is titled and other circumstances.
One possible form of ownership is tenancy by the entirety, which may apply to certain property owned by married couples and can provide a right of survivorship.
Another possibility is joint tenancy with right of survivorship.
Because property ownership and marital property laws can be complex, it is important not to assume that a spouse will automatically receive complete ownership of every jointly held asset. The property’s title and the type of ownership arrangement should be reviewed as part of an overall estate plan.
What Happens If the Deceased Owner Had a Will?
Many people assume that a will determines what happens to all property after death. However, jointly owned property with a right of survivorship may pass directly to the surviving owner regardless of what the deceased owner’s will says.
For example, a person may state in their will that their share of a jointly owned home should go to their child. If the property is held in joint tenancy with right of survivorship, the ownership interest may instead pass automatically to the surviving joint owner.
On the other hand, if the property is owned as tenants in common, the deceased owner’s share may be distributed according to their will.
This is one reason why reviewing property titles is an important part of estate planning.
Can Jointly Owned Property Avoid Probate?
In some situations, jointly owned property can avoid probate.
Property held with a valid right of survivorship may pass directly to the surviving owner without the deceased owner’s ownership interest going through probate.
However, this does not mean that every issue related to the property will automatically be resolved.
There may still be documents to file, title records to update, taxes or debts to address, and other legal matters that need attention. In addition, the deceased person may have owned other assets that are still subject to probate.
Property held as tenants in common may be more likely to require probate or another estate administration process to transfer the deceased owner’s ownership interest.
What If There Are Multiple Joint Owners?
When more than two people own property jointly, the outcome can depend on the type of ownership arrangement and how the ownership interests are structured.
With joint tenancy and a right of survivorship, the deceased owner’s interest may pass to the remaining joint owners.
With tenancy in common, the deceased owner’s share generally passes through their estate rather than automatically transferring to the other owners.
As the number of owners and beneficiaries increases, property ownership can become more complicated. The surviving owners may find themselves owning property alongside heirs or beneficiaries of the deceased owner.
Why Estate Planning Is Important for Jointly Owned Property
Joint ownership can be useful, but it should not be used as a substitute for a complete estate plan.
Adding another person to a property’s title can create legal and financial consequences. It may affect ownership rights, creditor issues, control over the property, and what happens when one owner dies.
A comprehensive estate plan can help you review how your property is currently titled and determine whether that arrangement supports your long-term goals.
It can also help coordinate your property ownership with other estate planning documents, including wills, trusts, powers of attorney, and beneficiary designations.
Review Your Property Ownership Before It Creates Problems
Many property owners do not review their deeds or ownership arrangements after major life changes.
Marriage, divorce, the death of a family member, the purchase of additional property, or changes in estate planning goals can all affect whether your current ownership structure still makes sense.
Reviewing your property title can help identify potential issues before they create complications for your family.
If you are unsure whether your property is held in joint tenancy, tenancy in common, or another form of ownership, speaking with an estate planning attorney can help you understand your options.
Conclusion
What happens to jointly owned property when one owner dies in Illinois depends on how the property is owned and titled. Property held with a right of survivorship may pass directly to the surviving owner, while property owned as tenants in common may become part of the deceased owner’s estate.
Because the type of ownership can affect probate, inheritance, and the rights of surviving family members, it is important to understand how your property is currently structured. Reviewing jointly owned property as part of your estate plan can help ensure that your assets are positioned to pass according to your wishes and reduce potential complications for your loved ones.