Buying or selling property

Property is often a household’s largest asset. Buying, selling or changing ownership can alter what forms part of an estate and whether a gift in an existing Will can still operate as intended.

Property bought or sold — a new chapter in life

The legal position

Property held as joint tenants passes automatically to the surviving joint tenant and does not pass under the deceased owner’s Will. A tenant in common owns a distinct share; that share forms part of the estate and can pass under the Will. If specifically gifted property is sold before death, the gift will ordinarily fail because the property is no longer in the estate.

What may need attention

Ownership structure

Joint tenancy and tenancy in common can produce different succession outcomes. Confirm the title rather than relying on who contributed to the purchase.

Specific gifts

If a Will names a particular property that is later sold, the intended recipient may not receive an equivalent replacement unless the document provides for it.

Debt and affordability

Mortgages and other liabilities affect the net value available to beneficiaries. Record the lender, ownership and key documents without storing unsafe access credentials.

When professional advice matters

Obtain advice where ownership is unequal, a property is held through a trust or company, someone has a right to live there, the asset is overseas, or the intended gift may create tax or cash-flow issues.

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General information only, not legal, financial, tax or medical advice. The effect of a life event depends on your jurisdiction, documents and circumstances.