How you hold title to your BC home can matter as much as your will. Learn about joint tenancy, tenants in common, adding a child to title, probate and blended families.
How you hold title to your home can matter as much as what your will says. I have practised law in British Columbia since 1991, and I regularly meet homeowners who are surprised by what happens to their home after a death. For most families the home is the largest asset, so it is worth understanding how it is owned before you finalize your estate plan. How Title to a Home Can Be Held in BC In British Columbia, a home is usually held in one of two ways when more than one person is on title: - Joint tenancy. Each owner holds the whole property together. When one owner dies, the surviving owner or owners generally take the home automatically, by right of survivorship. The will does not control who receives it. - Tenants in common. Each owner holds a share, which may be equal or unequal. When an owner dies, that owner's share generally passes under their will, or under the intestacy rules if there is no will. Many couples hold a home as joint tenants, which can be a good fit. It is still worth confirming that this matches what you actually want. Why Your Will May Not Control Your Home If your home is held in joint tenancy, a will that says the house goes to someone else may not do what you expect. Because the home passes to the surviving owner, it generally falls outside the will. That can work well for spouses. It can cause real problems in blended families, where one spouse may want their children from an earlier relationship to receive something. Adding a Child to Title Parents sometimes add an adult child to title to keep things simple or to avoid probate. This can create risks that are easy to miss: - The child's creditors, divorce or financial difficulties may reach the child's interest in your home. - Other children may feel treated unfairly, which can lead to disputes after your death. - You may lose some control over selling or borrowing against your home. - There can be tax and property transfer consequences. We do not give tax advice, so we work with your accountant (CPA) on those questions. Speak with a lawyer before changing title. A change that seems simple can be hard or costly to undo. Probate and the Family Home Probate is the court process that confirms an executor's authority. Property held in joint tenancy with right of survivorship often passes outside the estate, and property held in your sole name usually forms part of it. Which approach is right depends on your family, your other assets and your goals. Avoiding probate should not be the only reason to change how you hold title. Common-Law Partners and Blended Families If you are in a second relationship, think carefully about who should live in the home, who should own it, and what your children will receive. Without a clear plan, a surviving partner and your children can end up in conflict. Options may include holding title in a particular way, a life interest for a surviving partner, or a trust in your will. These are legal decisions that should be tailored to you. Wills Variation and the Home In British Columbia, a spouse or child can ask the court to vary a will they believe does not make adequate provision for them. The home is often at the centre of these claims. A clear plan and a clear record of your reasons can reduce the risk of a dispute. Questions Worth Asking Yourself - Who is on title to my home, and how is it held? - Does my will match what I want to happen to the home? - Are my powers of attorney and representation agreement up to date? - Have I thought about a spouse or partner, children from earlier relationships and a possible dispute? - Have I spoken with my accountant about the tax side? Next Steps A short review of your title, your will and your powers of attorney can prevent costly problems later. This article is general information, not legal or tax advice. Every situation is different. Meetings are by phone or secure video, by appointment only. Staff are always happy to welcome and help drop-in visitors, but it is best to make an appointment in advance to confirm the office is not closed.