What Happens to Jointly Owned Property or Bank Accounts When One Owner Dies?

Detailed Explanation

Whether jointly owned property or a joint bank account needs to go through probate, or simply becomes the survivor's, comes down to one legal distinction most people have never had reason to think about: joint tenants versus tenants in common. See the Wills, Probate & Estates hub for how this fits alongside the rest of estate administration.

Joint tenants: automatic survivorship

Owners who hold property as joint tenants each own the whole of the property together, not a specific share. When one joint tenant dies, their interest doesn't pass under their will at all; it passes automatically to the surviving owner (or owners) by what's called the right of survivorship. What is probate and when is it required covers this briefly: jointly-held assets pass to the survivor without a grant of probate, just a death certificate presented to the bank or the land titles office.

Joint tenancy is the default and most common arrangement for a family home owned by a married or de facto couple, and for most everyday joint bank accounts.

Tenants in common: the share goes through the estate

Owners who hold property as tenants in common each own a defined, separate share, commonly an even split but sometimes an uneven one (for example, 70/30). On death, that share doesn't pass automatically to the co-owner. It becomes part of the deceased owner's estate and passes under their will, or under intestacy rules if they didn't have one. See what happens if someone dies without a will for how that plays out with no will in place.

Tenants in common is more common for business partners, blended families who each want their own share to go to their own children, and friends or family members who contributed unequal amounts toward a purchase.

How to check which one applies

For real estate, check the Certificate of Title held by the land titles office in the state where the property sits. It states the ownership type in explicit terms. For a bank account, ask the bank directly; most everyday joint accounts operate on a survivorship basis under the bank's own terms, but it's worth confirming rather than assuming, especially for an account set up for a specific purpose.

Why this matters for estate planning

If the goal is for a share of a jointly owned property to go to someone other than the co-owner (children from an earlier relationship, for instance), a joint tenancy defeats that intention entirely, no matter what the will says, because the interest passes by survivorship before the will has any say. Anyone in this situation can sever the joint tenancy, converting it to tenants in common by lodging a transfer with the state land titles office, so their share of the property is instead dealt with under their will. This is worth raising directly when writing a will, since a will alone can't override a joint tenancy.

Things to Consider

• This is separate from superannuation. Super death benefits follow their own trustee-decided process, not property law. See how superannuation is paid out when someone dies for that process.
• A joint mortgage doesn't disappear. The surviving owner is typically liable for the full remaining loan, not just their original share, so check for mortgage protection insurance on the loan and speak to the lender early.
• Overseas property follows the local country's law, not Australia's. If the jointly owned asset is located overseas, the survivorship rules of that country apply, which may differ significantly from the Australian position described here.
• Executors still need to know about jointly-held assets, even though probate isn't required for them. They typically still need to be listed for a complete picture of the estate, even when they pass outside it. See what does an executor do.

Common Mistakes

• Assuming all jointly owned property works the same way. Joint tenancy and tenants in common lead to genuinely different outcomes; check the title rather than assuming.
• Believing a will can override a joint tenancy. It can't. A joint tenancy passes by survivorship regardless of what a will says; the tenancy has to be severed first if that's not the intended outcome.
• Not confirming a joint bank account's terms. Most operate on survivorship, but assuming this without checking, especially for a less typical account, can cause unnecessary delay.
• Forgetting the mortgage. A surviving owner who assumes the loan is "sorted" without checking for mortgage protection insurance or contacting the lender can be caught out by the full repayment obligation.