Joint Tenancy Vs. Tenancy In Common In Massachusetts: What Is The Difference?

If you own property with another person, whether a spouse, sibling, business partner, or friend, the way that ownership is titled matters more than most people realize. Two of the most common forms of co-ownership in Massachusetts are joint tenancy and tenancy in common, and the difference between them can shape what happens to your share of the property down the road. Do you know which one applies to your home or investment property?

What Sets Joint Tenancy Apart

Joint tenancy is a form of co-ownership that includes the right of survivorship. That means when one joint tenant dies, that person’s share does not pass through their will or through probate. Instead, it automatically passes to the surviving joint tenant or tenants. Joint tenants also generally hold equal shares in the property, regardless of how much each person originally contributed toward its purchase.

Under Massachusetts General Laws Chapter 184, Section 7, a conveyance or devise of land to two or more people does not automatically create a joint tenancy. The deed must contain specific language showing that intent, such as stating that the owners take the property jointly, as joint tenants, or to them and the survivor of them. Without that language, the law defaults to a different form of ownership entirely.

What Sets Tenancy in Common Apart

Tenancy in common is the default form of co-ownership in Massachusetts when a deed does not clearly establish a joint tenancy. Under a tenancy in common, each owner holds an individual, undivided share of the property, and those shares do not need to be equal. One owner might hold sixty percent while another holds forty percent, for example, depending on how the property was acquired or financed.

The key distinction is what happens at death. When a tenant in common passes away, their share does not automatically go to the other owners. Instead, it becomes part of their estate and passes according to their will, or through the state’s intestacy laws if they did not leave one. That share may need to go through the probate process before it reaches the intended heirs.

Why the Distinction Matters for Your Estate Plan

Have you ever assumed that a co-owned property would automatically pass to the other owner, only to find out that was not how the deed was written? This is a common source of confusion. A few practical differences between the two forms of ownership include:

• Joint tenancy avoids probate for the deceased owner’s share, while tenancy in common does not
• Joint tenants must hold equal shares, while tenants in common can hold unequal shares
• A joint tenant cannot leave their share of the property to someone else in their will, while a tenant in common can
• Either form of ownership can be changed through a new deed if circumstances or goals change over time

Because the specific wording in a deed determines which form of ownership applies, it is worth reviewing your own property records rather than assuming which category your home or investment property falls into.

Speak with an Attorney About Your Property Ownership

How your property is titled can have a significant impact on your overall estate plan, probate exposure, and what your loved ones ultimately receive. Our Norwood estate planning attorneys at Fisher Law, LLC help clients throughout the Greater Boston area understand how their property is titled and whether it aligns with their broader goals. Please do not hesitate to contact our team today to arrange a confidential consultation.

Source:

malegislature.gov/laws/generallaws/partii/titlei/chapter184/section7