What Are Joint Tenants in Common (JTIC)?
Let me explain what joint tenants in common, or JTIC, really means. It's a legal setup where two or more people own property or an asset together, but there's no right of survivorship involved. If one owner passes away, the others don't automatically get their share. This arrangement lets you own property with others and split the costs that come with it.
Understanding Joint Tenants in Common (JTIC)
When two or more people own an asset together, you can call them joint tenants in common. This could be real estate, bank accounts, brokerage accounts, investment portfolios, or other property types. You might see this setup in a will, like when a parent leaves property to their four children, assigning specific percentages or equal shares to each.
Ownership is usually pro-rata, meaning each person owns a portion equal to what they contributed—if you put in 60%, you own 60%. Sometimes, though, everyone gets an equal share regardless. As joint tenants in common, you all share the property equally and can't block each other from accessing it. For example, you can't stop another owner from withdrawing funds or selling their part.
Unlike other arrangements, when one owner dies, the survivors don't inherit automatically. You can decide in your will how your share gets distributed. Only if your will specifies it will the share go to the other owners.
This setup might sound odd, but it's practical when you want to own property without handling all the finances alone. You and another person could team up as joint tenants in common to buy a home or open a brokerage account, splitting the purchase price, taxes, maintenance, fees, and other costs.
Key Takeaways
- Joint tenants in common means two or more people own an asset without rights of survivorship.
- You can specify in a will how to distribute your assets after death.
- JTIC accounts allow unequal interests in properties but provide equal access and rights to all owners.
Special Considerations
You can form a JTIC agreement when multiple parties contribute funds to buy property, with ownership based on the percentage each put in. For instance, if you contribute 85% of the funds, you claim 85% ownership.
Remember, you can sell your individual stake even though the property is treated as one whole unit.
The property is generally handled as a single unit, not divided up. That means each tenant has rights to the entire thing, not just a slice based on their share.
Depending on local laws and the account type, you might be able to access resources like making withdrawals or selling your interest at will. Some states require all owners' signatures for transactions involving the whole property, forcing agreement for a full sale. But you can always sell your own stake individually. Even after a sale, the property remains a whole unit, not subdivided.
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