Losing a loved one is never easy, and the legal and financial questions that follow can be overwhelming. One of the most common concerns families face is what happens to property that was jointly owned with the deceased. For example, does the surviving owner automatically inherit the property, or will it need to go through probate?

In New Jersey, the answer depends largely on the type of jointly owned property that was established. Different forms of joint ownership come with very different rules about inheritance and transfer. Understanding these distinctions can help surviving owners and heirs take the right steps to protect their interests.

At Rosenblum Law, we can work with you to navigate these complex situations with clarity and compassion. In the meantime, keep reading for more information on the different types of joint property ownership, what happens to it if one of the owners dies, the most common complications that arise during this process, how to plan ahead, and the importance of hiring an attorney.

The Types of Joint Property Ownership in New Jersey

In New Jersey, property can be jointly owned in a few different ways. The three most common are: 

1. Joint Tenancy with Right of Survivorship (JTWROS) means that two or more people own equal shares of the property. Each owner has the same rights to use and enjoy the property.

1. Tenancy by the Entirety is a form of ownership available only to married couples, in which both spouses are considered a single legal unit. This type of joint property ownership provides added protection, such as shielding the property from the creditors of just one spouse.
2. Tenancy in Common allows two or more people to own property together, but with independent shares that may or may not be equal. Owners can also freely transfer or sell their shares without needing the consent of the others, meaning each party is entitled to his/her share of the property and also has the option of transferring it to another person. 

What Happens After One Owner Dies

How jointly owned property in New Jersey is distributed after one owner’s death depends on what kind of ownership it is. For a JTWROS, Tenancy by the Entirety, or Tenancy in Common, the outcomes are as follows: 

1. JTWROS: The deceased owner’s share automatically transfers to the surviving owner. This means the property avoids probate, or the process of administering a deceased person’s estate, which includes distributing assets to beneficiaries. 
2. Tenancy by the Entirety: This type of ownership creates a right of survivorship, where the property automatically passes to the surviving spouse after the other spouse passes away. Like JTWROS, this means the property avoids probate. Additionally, creditors of just one spouse generally cannot force the sale of the property to collect a debt.
3. Tenancy in Common: This joint ownership does not include survivorship rights. Each owner has a distinct share, and when one owner dies, their portion becomes part of their estate. This usually means probate is required before the share can be passed to heirs or beneficiaries.

Common Complications

When one owner of jointly owned property dies, disputes can arise between surviving owners and heirs. This is especially true if the ownership type is Tenancy in Common, which usually requires probate and may lead to family disputes over ownership. Blended families and second marriages can also complicate inheritance and lead to disagreements about who is entitled to the property. 

Mortgages, liens, or other debts attached to the property may also create complications for families, as a property cannot be transferred free and clear until all the recorded debts are satisfied. Additionally, in some cases, unclear or outdated deeds could make it difficult to determine the type of ownership. 

Planning Ahead

Here are some additional things to consider when choosing a type of jointly owned property.

• Select the ownership structure that best aligns with an individual’s family and financial goals.
• Consider whether Joint Tenancy, Tenancy by the Entirety, or Tenancy in Common offers the most protection and flexibility.
• Use wills or trusts alongside joint ownership to ensure a complete estate plan.
• Plan ahead with family members and spouses to minimize probate delays and reduce the risk of family disputes.
• Work with an experienced New Jersey attorney to avoid mistakes. 

Review the advantages and disadvantages of each type of joint ownership to decide which is most appropriate. 

How an Attorney Can Help

An experienced attorney is vital to avoid complications during property transfers in New Jersey. Professional legal guidance can help ensure a smooth transfer and protect property rights by:

• Confirming the type of ownership by reviewing the deed and clarifying whether survivorship rights apply.
• Ensuring a smooth transfer of property while minimizing delays and avoiding probate when possible.
• Resolving ownership disputes if the deed is unclear, outdated, or contested.
• Managing conflicts between heirs, particularly in blended families or when multiple parties have competing claims.
• Addressing financial complications, such as mortgages, liens, or other debts attached to the property.
• Guiding individuals through the probate process if probate is unavoidable. 

Contact Rosenblum Law Today

If you are facing the loss of a property co-owner in New Jersey, or if you want to ensure your own property is set up to protect your loved ones in the future, the attorneys at Rosenblum Law are here to help. 

Our team has extensive experience with probate, estate planning, and property transfers in New Jersey, and we can guide you through the process with clarity and care. Contact us today for a free consultation. 

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