Severing a joint tenancy to protect an inheritance

Last time, I blogged about not adding someone on jointly to title simply to avoid probate. This time, it’s terminating joint ownership in order to protect your heirs.

In Ontario, if you own property jointly with someone, you can sever the joint ownership at any time with no notice to the other person. Where this comes into play most frequently is with separations. If you have separated from your spouse, and you want to ensure that your half of the house goes to your kids rather than your now ex-spouse, you can sever the joint tenancy. This means that 50% of the house will go into your estate; if you have updated your will, this will put that 50% to your heirs (children, charities, etc.) rather than to your ex-spouse.

If you own a house with someone, and no longer want them to be able to have your half of it, this can be a useful solution.